Fall protection specialist Latchways (LTC) says that record order intake in its third quarter, boosted by strong sales in new products, should mean a "considerably" stronger second half.
IC TIP:
Sell
at
1025p
We said 'sell' because we were concerned about slowing sales in the US and a poor performance in Europe, which was being exacerbated by a weakening euro. Despite confident comments on the order book, we are still concerned about Latchways' ability to convert those orders into cash profits.
Latchways spoke of "challenging" trading and customers who are cautious over spending plans, which could easily lead to orders being delayed. Broker N+1 Singer downgraded forecasts for adjusted pre-tax profits for 2012-13 from £10.9m to £10.5m, giving EPS of 70.1p.
