Mixed results picture for engineering firm MS International

The Doncaster-based group, which makes components for the defence industry and parts for petrol station forecourts, said pre-tax profits fell 32 per cent to 3.3m in the year to May 1.

The growth in defence came from strong export sales and manufacturing efficiencies resulting from increased capital investment.

The defence division, which accounts for around 60 per cent of group revenues, said that orders are 40 per cent higher than this time last year.

But the forgings division was hit by extremely tough trading conditions and revenues fell 50 per cent on last year as the markets the group serves came under immense pressure of their own. As a result the division slid into a full year loss.

Petrol station forecourt structures reported weak European demand for the construction of new petrol stations. The division's revenues were almost 40 per cent lower than last year.

While the first half saw a "substantial downturn", the group reported a much improved result in the second half of the year. Net cash and short term deposits at the year end amounted to 8.9m.

Last month MSI bought out its joint venture partner for 4.5m. The group bought the remaining 50 per cent in Global-MSI from Portman International Securities Limited.

Global designs, manufactures and constructs petrol station superstructures and associated infrastructure products. It had gross assets worth 2.4m and added 200,000 to MSI's annual profit.