Rocketing costs saw printed circuit board manufacturer Prestwick Holdings file a pre-tax loss to the tune of UKP3.97m, compared to a small profit this time last year despite turnover which grew around 18.5%. Costs of sales grew 29% to UKP33.7m. Last year the company embarked on an ambitious series of acquisitions designed to turn it from simple board maker into a product design partner. The resulting debt saw its gearing reach 40% and this year it shot up to 121.7% as borrowings grew to UKP7.6m from UKP4.6m and shareholders funds dropped to UKP6.3m from UKP10.5m. Chief executive Wayne Osman has resigned, to be replaced in June by John Gilhooly as executive. Since then the company has been struggling to identify and control the costs which have contributed to what chairman Hugh Laughland calls a low point in Prestwick’s trading fortunes. Laughland says the main rises in operating cost took place in the group’s smaller businesses. To try and cut costs the group has restructured again, into three operating companies; Prestwick-Multitech, Prestwick-Circuits and Prestwick-Electroconnect. At the same time the company is trying to do a mini-IBM and the three companies have been given their own sales, marketing, finance, purchasing and computer departments, while the central operations have been cut drastically. Gilhooly believes benefits are already showing in terms of a much sharper focus among the autonomous units – the group apparently returned to profit in September. He is also heartened by a five-year order, value undisclosed, signed last week with Ford of Europe. But Preswick is now on the edge – We continue to enjoy the support of our principle bankers says Gilhooly, adding we have also expended considerable effort in obtaining the full support of our customers and suppliers who are supportive of Prestwick’s recovery prospects.
