FKI Plc saw pre-tax profits for the year to March 31 down 27% at UKP40.1m on turnover that fell 6% to UKP776.4m. This follows the exclusion of the Power & Projects Group for the four-and-a-half months up to the date of its demerger in August 1989 to form Babcock International Group Plc. FKI, which is split into three divisions – Automation, Transportation, and Engineering, has been affected by the recession that prevails in the UK and US. Although the Automation Group turned in a solid set of results, having benefitted from the acquisition of Osborn-Muschet Tools and Material Handling in the Control Products Division in particular, the Transportation activities suffered, notably in North America, and is now to be subjected to a major restructuring programme. Within the Engineering Group, most companies did well, especially Huwood and Parsons Chain, and in the US Hardware continued to be a strong performer. But losses made among the longer term contract businesses pulled down the overall division performance. In addition to restructuring costs, FKI has invested UKP19.4m in several small acquisitions. As a result, net borrowings at the year end stood at UKP83m, up 20%. But the group has a strong balance sheet, with net assets per share of 58 pence and net borrowings representing 33% of shareholders’ funds.
