Delta's interim report records reduced sales and profits in its electrical division while Novar reports difficult market for its Intelligent Building Systems companies.
Electrical suppliers are feeling the effects of a difficult trading climate, despite predictions of an upturn in business. Delta, the electrical and engineering services group which includes names such as MEM and Bill Switchgear, announced profits for its electrical division to the six months ending 29 June of £5.7 million, down from £6.1 million for the corresponding period in 2001.

This trend is reinforced by results from Novar, where the datacoms and electrical accessories sector of its Intelligent Building Systems division, which includes MK, reported a loss of £0.4 million, an improvement on the £2.6 million loss recorded in the second half of 2001.

Novar chief executive Jurgen Hintz claimed that the company is positioned for a solid second half to the year, even in these lacklustre markets.

Meanwhile, Delta chief executive, Jon Scott-Maxwell said: "Given the difficult climate, the results are quite good. By looking only at the pre-tax line, you are in danger of overlooking the future potential of our businesses, because we are still paying for the past."

Scott-Maxwell forecasts progress over the next year assuming there is no further economic deterioration. A strong performance by Delta's industrial services division has offset weaknesses in the company's electrical division.

His opposite number at Novar said: "Most of our markets that are driven by commercial and industrial activity remain soft, but we have been able to gain market share. Each of our sectors is in a strong position, with industry data showing we are outperforming key competitors."

Source

Electrical and Mechanical Contractor