Turnover increased by 2.5% to £28.25m from £27.56m.

Profit before tax was down by 1.7% to £4.68m due to a fall in investment income.

Basic earnings per share fell to 28.5p from 29.1p.

Chairman Andrew Thorpe said problems remained with Mackwell Electronics, which was still affected by the pound to dollar rate and its need to purchase electronic components priced in dollars.

Compact Lighting's customers 'are still being careful with their money and remain moderated in their store refurbishment programs'. However the new Solite Europe business was showing promise.

After a six-month delay, Thorlux Lighting was able to officially enter the Australian market on January 4.

Thorpe said it was 'more likely than not that revenues will remain on a similar pattern to last year'.