www.opsecsecurity.com
OpSec Security first-half profits drop, but company sees positive US dollar exchange rate effect for full year
OpSec Security Group PLC reported a drop in first half profits, but said the recent changes in the US dollar exchange rate, if maintained, should have a positive effect on the current year, which would help to offset any downturn in business or contract delays which it may experience.
The supplier of anti-counterfeiting technologies and services said pretax profit dropped to £367,000 in the six months to September 30 2008 from £859,000 a year earlier, while revenue rose to £18.9 million from £16.3 million in the same period. Revenue was lifted by recent acquisitions.
Chairman David Mahony said: "Due to our significant and largely completed investment programmes in both the UK and America we are now able to implement plans to reduce operating costs whilst retaining the ability to service all existing customers and expand production in areas when and where this is required.
“We expect to see some of the benefits of these investments and the associated cost reduction programmes in the second half of the current year with the full benefit impacting subsequent years," he added.
Cash at September 30 2008 amounted to £2,771,000, up from £1,265,000 a year earlier with further headroom available under the facilities agreement with The Royal Bank of Scotland.
“The first half of the current financial year coincided with a period of severe instability for the world economy and we expect that instability to continue. Given the world wide interest in security in all its forms we regard it as unlikely that the markets which we serve will not continue to grow relative to other economic sectors,” OpSec Security said.
