Samuel Heath & Sons, the Birmingham maker of builders' hardware and bathroom fittings, has reported sharply lower first-half profits on increased administrative expenses and reduced turnover.
The company, which had warned of tougher times ahead at its full-year results in July, yesterday said it expects the full-year results this year to be considerably down on 2006.
The company, based in Leopold Street, reported a pretax profit of £393,000 compared
with £755,000 a year ago while revenue fell to £6.16 million from £6.38 million compared with the same period last year.
Heath's also said it was less hopeful of improvement as the price of brass continued to be very high, while the pound's strength against the dollar was also having an impact.
The firm said its administrative expenses rose to £3.76 million from £3.64 million last year.
Company chairman Sam Heath said: "As forecast in my annual statement, profits for the half year were sharply lower.
"It is difficult to imagine a worldwide situation giving us much less hope for improvement. The price of brass continues at a very high level, the pound is strong against the dollar, and consumer and trade spending is subdued in most markets."
The second quarter was worse than the first, he added, therefore it was almost certain that the results for the full year would be considerably down on the previous one.
The company said it declared a same again interim dividend of 11p in view of the continued strength of the balance sheet.