Dickinson Legg unveiled gloomy annual numbers for an exceptionally difficult year to June. On a 13% turnover fall to £42.5m (£48.8m), adjusted profit before tax dropped to £1.6m (£3m). Chairman Barry Stevenson said that, although the group enjoyed improved profits in the second half, these were still well down on last year's second half. Furthermore, there's no sign of upturn in its markets and 'trading will continue to be difficult in the near term'. Over at Spooner Industries, which had enjoyed record orders the previous year, there was a dramatic reversal of fortunes with order intake reduced to about one third of those levels. Spooner, which makes air drying equipment for the paper, converting, metals and food industries, is experiencing extremely tight margins on contracts and losses of £60,000 were racked up on £13.3m sales. The picture was slightly brighter at Dickinson Legg, which makes primary tobacco-processing equipment. Sales were slashed by 22.4% to £30.2m and operating profits plummeted 34% lower to £2.2m. However, there were bright spots for investors who prefer the glass half-full option. 'After two years of progressive downturn, investment is going on in the UK and the tobacco majors are starting to spend again,' remarked chief executive Tom Mackie. Despite management's best efforts, Dickinson Legg is up against it at the moment. Anyone who previously bought on our advice should cut their losses and move elsewhere.

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