Chloride looks up despite blow

Power firm Chloride has shrugged off its falling first-half profits

Power firm Chloride shrugged off falling first-half profits amid signs of "reasonable stability" in orders.

The company, which provides blue-chip firms with systems to protect against power outages, saw tighter margins squeeze pre-tax profits 41% to £10.4 million in the six months to September 30.

But the firm's orders grew 4% to £143.7 million. It said it was "confident" over the full-year outlook as its geographical spread and range of businesses helped it overcome "widespread market softness".

Chief executive Tim Cobbold said: "We continue to see reasonable stability in our order intake...

"That said, we continue to be cautious in the way that we manage our business until there is clearer evidence of an enduring improvement in market trends."

According to industry estimates, secure power markets have shrunk by between 15% and 25% during the economic turbulence of the past year.

But Chloride said there had been "some sense of stabilisation" in markets during recent months. Independent forecasters predict limited growth next year and an acceleration during 2011 and 2012, the firm added.

While European markets including the UK were softer, Chloride said demand in energy and infrastructure markets remained resilient, particularly in the Middle East and North Africa.

The firm also noted improving trends in a competitive Indian market although strength in China masked weakness in other South-East Asian markets.

"In the longer term, the continuing and increasing demand for high quality secure power in both the developed and emerging economies will continue to outstrip the expansion of the electrical power infrastructure," Chloride said.