Walker delays CNC investment

In a trading update today (19 December), the long established Birmingham company said its operations were not immune from conditions in the wider economic environment including low confidence and lack of available credit. This was hampering business and consumer spending which, combined with the effects of falling Sterling, had a major effect on its overall first half performance. However, clothing accessories and ID products within the main UK and South East Asia fastener operations had a satisfactory first half year with sales holding up well, although profitability had been adversely impacted by the weakness of Sterling. The hot forging (pictured) subsidiary TW Stampings had been more affected by the economic slowdown in the short term with reduced order intake and a slow build up from new customers and products. The update said: “In light of this environment, the Board has decided to delay the proposed investment in new CNC machining capacity. As a short term measure existing plant has been re-tasked to carry out the work on new products, for which some orders have already been received and for which the new plant is ultimately intended.” In the last few weeks new TW Stampings business had started to come through and at the close of the first half orders stood at £978,000 (2007: £687,000). Although this new business would have no effect on the first half, it would impact the second half and the following year.