LONDON (Alliance News) - Corac Group PLC Tuesday said improved revenue across all three of its divisions had reduced its losses as it moves its focus to developing its profit margins.
Revenues across the group increased by 20% to GBP9.9 million in the six months ended June 30, compared to GBP8.3 million in the same period in 2013.
Corac, a group of UK-based engineering companies active in energy and environmental technologies, reported a pretax loss of GBP2.1 million in the half-year compared to a GBP2.4 million loss in the comparable period in 2013.
The company's divisions "have focused on their technical advantages and their strongest relationships whilst eliminating those activities that have proved to be a drain on their resources and performance," said Chief Executive Phil Cartmell.
Corac's Atmosphere Control International division, which focuses on the design and manufacturing of air-purification equipment, saw revenue jump to GBP4.7 million in the recent half, up from GBP4.5 million a year before.
Corac Energy Technologies, the company's research and development subsidiary, posted revenue of GBP800,000 in the first half of 2014, compared to GBP500,000 a year before.
"The increase in revenue [from CET] is from the continued focus on delivering early systems for two contracts in the renewable energy sector and the detail design of the BP platform compressor system," said Corac.
Corac Energy Technologies had a GBP2.1 million order book as of June 30, up from GBP1.1 million a the same point in 2013.
Hunt Thermal Technologies, developers of heat transfer equipment, increased revenues to GBP4.5 million from GBP3.4 million a year earlier.
"Further contract wins (for HTT) announced since the half year end have replenished the order book and will support the second half performance and the early part of 2015," said Corac.
Looking ahead, Corac said the group strategy is to extend geographical presence and support key clients across the three businesses.
"Organic growth initiatives will continue at Atmosphere Control International...and new service opportunities will be examined to expand the footprint within established relationships," the company said.
Corac said the emphasis at Hunt Thermal Technology is on securing higher-margin business in its established sectors, whilst pursuing opportunities as they arise. The company continues to review acquisition opportunities to accelerate growth, it added.
Corac Energy Technologies will focus on relationships in renewable energy and upstream gas production where its core technology "is proven", it said.
"The board is confident that this approach will lead to revenue growth and margin improvement in all three businesses," said Chief Executive Phil Cartmell.
"The group continues to evolve and grow, and with each of the operating businesses making stronger contributions, we anticipate demonstrating the true value that exists in our technologies and propositions," Cartmell said.
In a separate statement, Corac announced that Chief Financial Officer Jon Carter has left the group with immediate effect. Current Chief Operating Officer Mark Crawford will assume the additional responsibilities, drawing upon his experience in the role between 2009 and 2013.
Corac's shares were down 13% to 6.30 pence per share Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
