Markets less predictable, says Mount

York-based Mount, which is listed on the ‘junior’ AIM market, has three operating subsidiaries, Redapt, Raxton and Hi Flow Valves, all serving the oil and gas and petrochemical industries and a range of other industrial markets including mining, waste water and pharmaceuticals. Redapt and Raxton specialise in the manufacture and supply of thread converting adaptors and reducers, the requirement for which arises because of the diverse range of thread specifications incorporated into equipment used in hazardous areas, while Hi-Flow stocks, sells and distributes industrial valves and actuators to the oil, gas, petrochemical, process and related industries. Announcing the company’s 2008 results, chairman Colin Ainger said that although the final quarter of 2008 had seen a considerable reduction in the oil price which appeared to have stabilised during the early part of 2009, the company’s directors did not believe that there was a direct link between oil price movements and the current level of Mount's business. “The group's performance in the first quarter of 2009 has been in line with management's expectations, however the uncertainty created by the general economic conditions is beginning to be noticed in the order levels flowing through from our distributors,” he went on. “As we have no direct link with their end customers it is difficult to gauge the individual reasons behind these changes. Many of the fabrication contracts they supply have long gestation periods, typically 1-3 years, and the work can then be phased over several years, so any changes in client activity may be difficult to anticipate. The requirement to bring on stream replacement oil and gas reserves barely changes, despite the fluctuating nature of the oil price. Against this background, the board anticipates that the market for its products will be less predictable than in previous years.” Mount announced 2008 sales of just under £12 million and a pre-tax profit of £3 million.