HAMPSHIRE-based steel processor Precoat International yesterday warned first-half profits would come in below expectations and said it was considering taking itself private.

The company, based in Hartley Wintney, is a processor and distributor of pre-coated steel in the UK and Canada.

It said it estimated pre-tax profits for the half year would be around £1.5 million.

This compares with £1.76 million at the same point last year.

The company also warned that increasing pressure on margins would mean full-year profits were also likely to fall short of the £3.4 million which was achieved last year.

As such, Precoat said it had instructed its advisers to undertake a financial review of the business, including the option of a management buy-out led by chairman Ian Williams.