Timber and fencing company Hawkins-Salmon recorded significant losses for the six months ending September 30.
Parent company Ensor Holdings plc said management difficulties at Hawkins-Salmon, its part relocation from Northamptonshire to Cheshire and a poor economic environment created the bad results, which impacted on group profits as whole.
“The problems at Hawkins-Salmon have been identified and addressed,” said Ensor chairman Ken Harrison.
Mr Harrison said an experienced management team with proven timber industry background had been appointed at Hawkins-Salmon, which has been restructured to realise substantial cost savings and productivity improvements.
“Current indications are that this business is operating much more efficiently and is recovering its customers and market position.”
Ensor, which runs various businesses in the building product and packaging sectors, recorded a pre-tax loss of £260,000 for the period, compared with profits of £943,000 a year ago.
Excluding Hawkins-Salmon, group pre-tax profits were down by £267,000. The timber company’s results reduced group pre-tax profits by £836,000.
“The problems described at Hawkins-Salmon turned the group result from a respectable profit into a small loss,” said Mr Harrison.
