Molins' Profit Up in First Six Months

Source from:  Tobacco Reporter 08/29/2011

Sales at Molins' tobacco machinery division during the six months to June 30, at £15.8 million, were up slightly on those of the first six months of 2010, £15.3 million. And operating profit before exceptional items, at £1.8 million, was much improved on the £0.4 million loss of the first half of last year. Molins said that sales of new and rebuild machines were at similar levels to those of the previous year, but at improved margins. Sales of aftermarket products were increased. Meanwhile, sales at the company's scientific services division, at £9.3 million, were down slightly from £10.0 million, but operating profit was up from £0.8 million to £0.9 million. Overall, Molins' sales were down by 3.7 per cent to £38.8 million, underlying operating profit was up by 112.5 per cent to £1.7 million, profit before tax was up by 123.5 per cent to £3.8 million, and profit for the period was up by 118.2 per cent to £2.4 million. Underlying earnings per share were up from 2.5p to 6.3p, basic earnings per share were up from 5.7p to 12.8p, while dividend per share remained unchanged at 2.5p. In announcing the half year results, chief executive, Dick Hunter, said: "As expected, order intake in the first half of the year was significantly higher than last year. Although the phasing of deliveries resulted in slightly lower sales, underlying profits improved through a combination of favorable product mix, strong activity levels and cost reductions. "Order prospects for the second half remain in line with plans set at the beginning of the year, although the board is mindful of the continuing uncertain economic conditions. With performance in the first half of the year being slightly stronger than planned, the board expects that the group will show progress in the year." Enditem