Business Weekly - Cambridge, UK

The company blamed the ‘severe reduction in product shipments to a key customer,’ reported in its interim results, for the swing from a £3.49m profit last year to a loss of £3.21m for the year to March 2007.

Profits plummeted on the back of a fall in turnover from £26.66m last year to £17.77m, and the firm cited the weak dollar and amortisation and pension adjustments, along with the shipment reduction for the marked fall.

“As foreshadowed when reporting on the interim results and the outlook for the second half, the results for the full year ended 31 March 2007 reflect the material losses posted for each of the six month trading periods,” chairman George Curry said in a statement.

The firm said that improvements had already been made, with operating targets for the current year on or slightly ahead of operating targets, but that firm progress would most likely not be seen before the second half.

“I am disappointed with the full year results but encouraged that steps to tackle issues under management control will bear effect. I am confident, subject to unforeseen circumstances, in expecting a firm improvement in performance for this current year, including clear visibility of the point when the group will return to profitability,” Curry said.

CML's share price has dropped 11.69 per cent, falling 15.75p to 119p.