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Latchways enjoys aerospace lifeline

RESULTS: Safety harness specialist posts record results as aerospace sales take off and, with a growing US order book, we upgrade our advice

Safety harness specialist Latchways (LTC) has reported record sales and profits, buoyed by orders from the aerospace industry and overseas which underpinned a sharp second-half recovery. Revenues jumped by a third on the first half and were up by a quarter on the second half of last year. Reported profits benefited from one-off gains, but strip these out and pre-tax profit improved 3.3 per cent to £10.3m.

IC TIP: Hold at 1,045p

The Safety Products division - responsible for three-quarters of Latchways turnover - was key to the improved performance. Revenues here increased 7 per cent, having been down 10 per cent at the half-year stage. Demand from Airbus and British Airways for the Wingrip product lifted UK sales by 14 per cent to £12.5m and offset ongoing weakness in UK construction.

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