Hydro International's first half has been hit by a tough trading, which means profits for the period will be below last year's record level, prompting us to downgrade our recommendation.
IC TIP:
Hold
at
121.5p
Hydro, which makes drains, culverts and more sophisticated controls, has seen delays to some of the projects it is selling to, prompting management to say that full-year profits will be significantly weighted towards the second half. UK waste water has seen a pick up in activity, but the US waste water business has been hit by public-sector spending cuts. Storm water is linked to the difficult new-build market in the UK and in the US; new distribution partners are reporting high levels of enquiries, but orders have been "relatively slow to materialise".