The decline of the construction industry has pushed Eleco, which makes technical products for the building trade, into the red.
Full-year revenue fell by 16.9 per cent from £84.9m to £70.6m, and the group swung to a pre-tax loss of £1.4m, compared with a profit of £8.2m last year.
However, Eleco recommended a “modest” final dividend as trading in construction software remained in line with management expectations.
In spite of the downturn, Eleco said it was committed to investing in developmental projects, and reported a net cash position of £1.59m.
John Ketteley, Eleco’s executive chairman, said: “A major decline in hotel and student accommodation projects took a severe toll on the company’s pre-cast concrete side. However, I remain confident our recovery will be driven by our building systems’ product offering. Eleco will be well placed to take advantage of an upturn when it comes.”
The group recommended a final dividend 0.4p per share, bringing the total dividend for the year to 0.8p.
Shares in the group on Friday fell 9 per cent to 35p.
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