(Alliance News) - Unigel Group PLC on Thursday said its interim profit soared on lower costs, but said it is only "cautiously optimistic" going into the second half of the year as economic uncertainties loom.

Unigel is an Eastbourne, England-based manufacturer and distributor of steel tape and thixotropic gels under the Unitape and Unigel brands. These are used in the making of telecommunications fibre optic cables.

In the six months to June 30, Unigel said pretax profit jumped 93% to GBP851,949, up from GBP442,151 a year prior. This was partly driven by a 12% drop in administrative expenses to GBP1.5 million, due to "more efficient staffing levels in production" as well as an improved foreign exchange environment, the company said.

Revenue edged down by 4.3% to GBP18.0 million from GBP18.8 million the year before.

The firm's net assets on June 30 were GBP2.9 million, up 26% from GBP2.3 million on December 30.

Looking ahead, Unigel said it remains "cautiously optimistic" going into the second half of 2023 given the current macroeconomic climate. The company noted that the global fibre optic cable industry shrunk by 3.4% in the first half of 2023, amid a slowdown in telecommunications network deployment.

Shares in Unigel were untraded at 75.00 pence each on Aquis Stock Exchange in London on Thursday morning, having last traded at that price on August 9.

By Sabrina Penty, Alliance News reporter

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