Dewhurst Group PLC said it expects to achieve market expectations in the current financial year, despite reporting an interim contraction in profit amid a softer market in North America.

The London-based supplier of components to the lift, transport and keypad industries said pretax profit fell 3.1% to £3.9 million in the six months to March 31, from £4.0 million a year prior.

Revenue edged up 1.9% to £31.0 million from £30.4 million, but operating costs increased 3.3% to £27.3 million from £26.4 million.

‘In North America the market has softened this year, due to the effect of increases in interest rates on property investment. The impact of this will feed gradually into sales during the rest of the year. Orders in Australia have been healthy this year, which should generate sales growth in the second half. The UK should continue its encouraging performance, although the impact of the election is an uncertainty,’ the company said.

Dewhurst declared an interim dividend of 5.00 pence per share, up 5.3% from 4.75p a year prior.

Looking ahead, the company expects to meet market expectations for the financial year ending September 30, citing revenue growth of 6.7% to £60.2 million, up from £56.4 million, and an adjusted pretax profit of £8.4 million. For financial 2023, it had reported a pretax profit of £8.1 million.

‘On balance, we expect overall growth in the second half, although this will be dampened if the pound continues to strengthen in the rest of the year,’ Dewhurst said.

Dewhurst shares fell 1.9% to 1,168.00 pence each on Monday afternoon in London.

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