ICS soothes fears over Pergau link

INDUSTRIAL Control Services, the electronics firm that has supplied equipment to the Pergau dam project in Malaysia, increased pre- tax profits by 10 per cent in the six months to 30 November, writes Robert Cole.

Peter Hall, chairman and chief executive, said ICS was protected from the fallout over Pergau because it supplied the equipment through GEC Alsthom. The company said other contracts won in Malaysia were unlikely to be affected by the trade dispute because they were being handled by ICS's US subsidiary.

Pre-tax profits of pounds 2.6m compared with pounds 2.3m last time. Sales rose to pounds 39m from pounds 30m.

Earnings per share fell from 3.8p to 2.9p. ICS suffered dilution because Elsag Bailey, an Italian partner, exercised its option to buy 50 per cent of a joint venture. In the process, ICS's share of profits from the venture was halved.

ICS's earnings were also depressed by a pounds 546,000 restructuring charge. In the reorganisation 130 people lost their jobs.

The dividend has been increased by 13 per cent to 1.5p. Debt, at about pounds 10m, equates to gearing of 50 per cent. Shares in the company were floated at 110p in March 1992. Yesterday they rose 1p to 178p.