Molins' loss widens in tough 2015 year

25th Feb 2016 16:22

(ShareCast News) - Molins traded broadly in line with expectations in the 2015 calendar year, it reported on Thursday, though that meant it struggled in some areas and saw reported losses widen considerably.The AIM-traded tobacco technology and services group said its results were in line with market expectations, with sales from continuing operations broadly flat at £87m, compared to £87.4m in the prior year.Underlying profit before tax from continuing operations was £3.8m, down from £5.3m, and its statutory profit before tax from continuing operations was £2m, down from £3.9m.Overall, Molins made a loss of £4.1m during the period, widening from £0.3m last year.The company's underlying earnings per share from continuing operations were 15.1p, down from 22.4p. Its basic loss per share was 20.9p, much larger than last year's 1.3p.Molins' board proposed a final dividend of 1.5p, taking the total for the year to 4p."The performance of the Packaging Machinery division was pleasing, with strong sales growth and significantly increased profits, but the challenges within the geopolitical environment and general market sector continued to impact the Instrumentation & Tobacco Machinery division," said chief executive Dick Hunter. "The board is mindful of the challenges being faced in 2016, which we anticipate will include a significant rise in the statutory levy payable to the Pension Protection Fund, and we also continue to review strategic growth opportunities. We therefore consider it appropriate to retain more funds within the Group and to reduce the level of the proposed final dividend," he added. Looking further ahead, Hunter said both divisions remained well-positioned to progress as the trading environment improved, and the company continued to view medium-term prospects more positively.During the year, Molins disposed of its analytical services business following a strategic review, and implemented a new reporting structure.