MOS International - Major upside to follow

2005 will be the year for Mos International.

an ADVFN competitor
MOS International today posted wider losses at the interim stage which the company put down to restructuring costs.

These include further write-downs of investment in subsidiaries, slow moving stock write-offs and non-recoverable debts.

For the six months to September 30th, the oil services group recorded a pretax loss of £979,868 compared to a loss of £10,793 a year earlier. Sales though increased to £1.55m against £1.52m a year earlier.

Chairman, Philip Wood, said that while the overall loss is disappointing, the company has removed a significant amount of fixed cost from the business.

He said 'these results reflect not only the write-downs but, unfortunately, the long-term nature of many employment contracts, entered into under the previous management, the cost of which we are still bearing. As a result we will not see the full benefit of the action we have taken until the 2005/2006 financial year.'

He added that the order books are at a record level and the outlook is 'positive'.

After the restructuring, the group will operate two distinct divisions; Offshore Equipment and Handling & Access Equipment.