AB Electronic Products Group Plc has reported a year-end profit of UKP15.2m, down UKP1.2m from the same time last year, on a turnover of UKP208.6m. These figures include an extraordinary item of UKP517,000 representing an aborted acquisition, on which the board was not prepared to comment. The UKP208.6m turnover is the highest level yet achieved, a 5% increase on last year’s figure. The company claims to have recovered from the half-year downturn in assembly operations caused by the reduced schedules of a major customer, most likely IBM, and it is now operating at full capacity. The components and assembly divisions are still core to the company’s activities, but they suffered from soft markets, and AB has restructured its connector and switch operations in Wales and Northampton. Telecommunications was not a major contributor to sales, but showed the strongest growth rate, up by UKP14m, and despite a lack of commitment from British Telecom to the Tantel viewdata product, AB is optimistic that demand will come from other interested groups. Resale and distribution margins were down and those units have been hived off from components to form a separate division. Aerospace and defence was relatively stagnant, and is expected to take a downturn in the coming year, despite negotiations with McDonnell Douglas and Sikorsky. The automative division performed well, writing over UKP40m, which exceeded targets, and it has contracts for vehicles not due to be launched until the mid-1990s. The company plans to build a new plant in the near future, employing over 400 people, and it is confident about the coming year, with one or two reservations about the UK economy and knock-on effect of high interest rates. It saw a 26% increase in overseas sales, and believes that will continue in the future. As regards expansion, it wants to grow geographically, and acknowledges that small acquisitions are a possibility. The City reacted favourably, and the share price put on 11p to 413 pence.
