Target Chloride's signs of recovery

The group, which last month rejected a 723m unsolicited bid from US industrial giant Emerson Electric, reported a 5 per cent drop in underlying pre-tax profits to 41.4m in the year to March 31.

But it said the group had performed "resiliently" and gave a confident outlook for the year ahead after orders for the new financial year rose 16 per cent to 160m.

Chloride, which provides blue-chip companies with systems to protect against power outages, firmly rebuffed the takeover proposal from long-time suitor Emerson in April, but the market is waiting for news of its bidder's next move amid expectations of a potential higher offer.

The UK company was a well-known battery manufacturer but has been a secure power solutions firm since 2000. It employs 2,300 people in 15 countries, of which 374 are located in the UK.

Chloride, which has offices at Southampton, Aberdeen and Bedford, revealed restructuring costs of 5.9m after tough action to cut costs amid the recession, trimming head office and administration functions.

With these costs and other one-offs taken into account, profits were 25 per cent lower at 29.9m. However, its revenues rose 3 per cent to 336m over the past year and its markets are beginning to revive after the economic woes.

Norman Broadhurst, chairman of Chloride, said: "The board now sees clear, positive signs in both our end markets and order intake trends, which together with a record opening order book, provides the board with confidence in the prospects for the group for the year ahead."

Shares in Chloride soared last month after its US suitor went public with the proposal, but they have since lost some of those gains as Emerson has yet to return with an improved price.