Specialist building system and software group Eleco plc has issued a profits warning ahead of its interim results.
Eleco, whose business in the timber sector includes software, truss connector plates and the Ecojoist floor system, said its UK operations experienced worsening trading conditions in the second quarter of the financial year.
It still expects to report small operating profits for the six months ended December 31, 2008, and maintains that its financial position is strong due to a positive net cash balance and £14.5m committed credit facilities through to 2012 and beyond.
Eleco’s UK Building Systems division was affected by delays in order confirmation and site starts. But it said delays appeared to be resolving and projects should get under way in the second half of the financial year ending June 30.
Its construction software business performed “in line with expectations”, though with some weakness reflecting the downturn in housebuilding and new project activity.
