GEC enters 'investment ' phase as profits and sales rise

GEC enters “investment ” phase as profits and sales rise
Richard Wilson
Recent acquisitions have raised expectations about the future performance of electronics group GEC. The group has reported a seven per cent rise in pre-tax profit and a 15 per cent rise in operating profit for the year ended in March, but still the City is more interested in GEC’s plans for investment in its core defence and telecommunications businesses.
“We are moving into a phase of investing in high performing companies to grow the business with a clear focus on three core business areas,” said GEC managing director George Simpson.
As one analyst commented: “What is more important is what they say about the business rather than the actual figures.” Much will depend on GEC’s plans to strengthen its position in the core defence electronics market. According to Simpson, there has been “a strategic shift to take the group further into high technology growth markets.”
Pre-tax profit of ?1bn was achieved on a turnover of ?10.4bn, which was 5 per cent up on last year despite the effects of the high pound. The high value of sterling had reduced sales by ?750m, said Simpson.

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