Insider Media Limited

Autologic is on the lookout for acquisition opportunities after posting "solid" results for the six months to 30 June 2011. The Northampton company grew both turnover and pre-tax profit after exceptionals for the period.

The business, which specialises in vehicle storage and distribution, reported revenue of £76m for the period, up by 10.3 per cent from £68.9m a year earlier.

Although pre-tax profit was steady at £1.1m there were no exceptional costs on the balance sheet in 2011, unlike the £500,000 recorded in 2010, leading to a real-terms improvement of 83.3 per cent.

As a result earnings per share rose from 0.7 pence to 1.2 pence.

Avril Palmer-Baunack, CEO, said the company would now aim to "create a wider automotive support services business both through organic and acquisition routes in a prudent manner".

She said: "We expect the second half of 2011 to provide more challenging trading conditions generally in the automotive sector, however, Autologic now has a more balanced portfolio of contracts and service offering and is better placed to react to different levels of demand.

"The group continues to invest in key assets and in June 2011 renewed its banking facility to run through to September 2015, with improved commercial terms.

"In terms of the underlying business, assuming that the economy continues in line with the broad consensus of forecast opinions, we believe we will trade in line with our expectations for the second half of 2011."

Autologic renewed its financing arrangements on improved terms with GE Commercial Finance in June 2011, which it said reflects the lower risk profile and increased stability of the business.

Overall debt rose during the period from to £6.2m from £1.9m in December 2010. This reflects a £2.6m investment in transporters, £900,000 in capital projects to improve efficiency and an £800,000 demand for working capital.