The completion of Cambridge Electronics Industries Plc’s disposal of its electronic components activities was largely responsible for group turnover for the six months to June 30 being down 17% on last time; out of the businesses left, Cambridge in fact saw a modest 10% increase in turnover, with only the defence arm doing really badly. Apart from its medical and motion control divisions – both of which saw significant increases in revenues – the group’s other main activities now lie in electro-optics and flexible circuit board manufacture. Sales of electro-optical equipment – mainly based on infra-red technology – were up by a 11% to UKP8.8m, and should continue upwards aided by the contribution of US infra-red specialist United Detector Technology Instrument Group, acquired for UKP1.4m in July. In flexible printed circuit boards – used where space is limited, such as in missile control systems – sales were up 21%, largely as a result of board-stuffer Keltek Electronics Ltd’s performance. As a whole, pre-tax profits were down UKP1m to UKP5.3m, but an extraordinary gain of UKP2.2m arising mainly from the sale of Belling Lee Intec Ltd helped the group to net profits up to UKP5.7m. The disposal of the electronics components division was completed mid-July, and together with the sale of Cambridge’s 51% interest in connector company Varalco Ltd, will bring in proceeds of UKP31m and a net extraordinary profit of around UKP1m to be included in the full year results. The board, which declared a 3.3 pence share dividend, 10% up on last time, stated that the results were in line with expectations, and re-affirmed its intention to make high-technology acquisitions, particularly in the area of infra-red equipment. The results lifted the company’s shares by tuppence to 159 pence.
