some of its subsidiaries. Market reaction was to swiftly mark the shares
down 13p to 92p to capitalise the group at #29m.
The profits indication is just one from the increasing number of
companies warning of adverse conditions including giants such as
Courtaulds. Last Friday alone, there were at least five and the flow
must be expected to accelerate as higher interest rates lead to
de-stocking by UK customers and the strength sterling chokes off exports
and encourages imports.
Crystalate is chaired by Lord Jenkin of Roding, a former Environment
Minister. In the last couple of years, there have been major management
The company's problem areas have been in the US resistor activities,
the Bresson telephone voice box operations and in micro-circuits. And
the important Welwyn electronic systems subsidiary is now suffering from
customers rescheduling orders.
At the interim stage to March, pre-tax profits recovered from #1.68m
to #2.29m with general expectations being for a full-year outcome around
the #5.7m seen in 1987-88. Shareholders have seen no net increase in
profits since 1984 with earnings gently declining. Inevitably, there
will be a heightening of speculative interest in the stock on takeover
hopes which may be sufficient to overcome the poor medium-term trading