Molins, which produces cigarette making equipment and packaging machinery, has reported a steep fall in pre-tax profits but insists its performance will improve in the second half.

Group sales in the six months to June 30th were £39.9m, down only slightly on the £38.8m the year before. However, underlying operating profit was just £0.8m compared to the £1.7m seen at the same point last year.

Underlying earnings per share came in at 3.6p (2011: 6.3p) while net funds at June 30th were £5.7m down from the £7.1m reported at the end of 2011.

On a brighter note, Molins says orders are 14% up on the prior year.

Chief Executive Dick Hunter commented: "As indicated previously, group trading performance will be strongly second half weighted and the board's expectation of performance for the full year remains unchanged.

The market was not impressed however; at 10:11, the stock had fallen 12.6%.

BS

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