Thin films and coatings measurer Millbrook Scientific Instruments has reduced interim losses 46 per cent to £211,000.

Bombed-out Millbrook, which designs and manufactures instruments to measure nanoscale properties of films and coatings, increased turnover 68 per cent to £1.05 million in the six months to September. This growth reflects an easing of production problems at the AIM-quoted company’s Blackburn plant, which enabled it to clear much of the previous order backlog for its core MiniSIMS product.

Chairman Stephen Blank, who replaced Dr Peter Stefanini in May after a profit warning, says this backlog clearing was the chief reason for the first-half improvement, adding that steps taken to cut overheads will not show through until the second half-year. He points out that the MiniSims order book is now ‘rebuilding’, while orders for Millbrook’s NanoTest product remain ‘strong’.

The company, which lost £481,000 in the year to March, was hit by a cash flow crisis in July, caused by the Blackburn problems and damage to an instrument in transit to a customer. Key shareholders, led by Yorkshire Fund Managers, provided the needed £400,000 at 2p a share and Millbrook ended September with £621,000 cash.

Blank says the company expects continued steady sales growth for its NanoTest instrument. Space constraints at Millbrook’s Wrexham facility have held up progress, as legal hitches delayed a move to new premises nearby, but he suggests the move will be complete before the end of the financial year.

Millbrook shares, which perked up 0.75p to 2.25p this morning, have disappointed investors in the past, having fallen from 12.13p in late 2005 to 1p last August. They represent a high-risk recovery punt.

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