Industrial automation company Eurotherm International Plc has succumbed to the tough economic conditions in the UK and the US and has not met its expectations at year end: turnover grew by 10% to UKP164m, but pre-tax profits slumped 25% to a little over UKP13m. Despite this disappointment, company chairman Dr Jack Leonard chose to highlight some of the year’s successes, which include notable successes in the cable and metals industries both at home and overseas; orders won in Russia where the potential is significant although business must be conducted with care and sales on the continent that grew by 22% over the year. However, the past financial year has been one in which Eurotherm has taken stock of its position and its future. Consequently, the decision was taken to cut staffing levels by 10% as overheads were overtaking revenue growth. Meanwhile the directors have also decided that the company’s corporate structure was in a bit of a rut, having remained unchanged since its flotation in 1978. So an overhaul of Eurotherm’s organisation is under way to bring international operations more firmly under centralised control. Thus far restructuring has cost the company UKP2.8m, a sum that is reflected as an extraordinary charge in its results. As for the future, Leonard says that there should be some profit recovery in 1991, that orders and shipments in the current financial year are on a par with those for the last financial year, and that he remains quietly confident about Eurotherm’s long term prospects as the company has weathered similar conditions in 1974 and 1981.
