CLYDE Marine, the equipment maker for yachts and pleasure boats, has reported a ''solid recovery'' in its trading fortunes, despite booking a one-off charge of (pounds) 2.5m for costs associated with the recent closure of its Scottish factory. However, chairman Rhoddy Swire warned yesterday that Clyde will post a loss for the second half of 2003 amid a ''very difficult'' market for the marine leisure industry.
The Ofex-quoted company, which a few years ago employed more than 100 workers on the Clyde, announced in June that it was pulling production out of Scotland, with the loss of its final 28 manufacturing jobs at Cambuslang. Only seven designers and six executives remain in Scotland, including chief executive Arthur MacMillan.
For the 18-month period to June 30, Clyde posted a pre-tax profit of (pounds) 1.1m, compared with the loss of (pounds) 1.9m in 2001. The upturn would have been more marked but for the (pounds) 2.5m exceptional charge, which MacMillan said included ''generous'' redundancy payments to the Scottish staff and other employees laid off as part of a restructuring.
Clyde has trimmed the payroll at its remaining operations, in England and Connecticut in the US, from 560 to around 500 in recent months. MacMillan said the firm is trying to offload the long lease it retains on the Cambuslang facility.
Turnover increased to (pounds) 81.8m, an 8% rise on an annualised basis. Earnings per share for the 18 months were 7p, compared with a loss per share of 27p in 2001, but the board did not recommend payment of a dividend.
Swire commented: ''In a very difficult trading environment, the result represents a solid recovery from the disappointment of the previous 12-month period. Management continues to focus on reducing fixed costs in the group and a large one-off charge for restructuring costs has been incurred in order to accelerate this process.''
Clyde anticipates lower sales and a trading deficit for the final six months of the year, due to the seasonal nature of the business.
Swire added: ''The outlook for the leisure marine industry is, as ever, difficult to predict with confidence.
''Recent trading in the US indicates that the general decline in sales may be over but, despite the very low interest rates, there are only a few customers indicating that they are confident of material growth in the forthcoming period.''
He added: ''In Europe, it is likely that the market will continue its recent decline, especially given the unfavourable economic climate.''
Clyde has cut its net debt from (pounds) 17.5m to (pounds) 13.3m.
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