The company said that, in spite of the decline in performance, it was optimistic that its markets would begin to recover in 2004, after early signs of an upturn in America, which accounts for two thirds of its business.

Tomkins, which has undergone a restructuring in the past two years, added that it had accelerated its cost-savings programme, with strategic manufacturing initiatives expected to deliver £50 million of cost savings in 2004, £10 million higher than previous estimates. Meanwhile lean manufacturing, which finds ways to boost the efficiency of the manufacturing process, would produce £20 million of cost savings in 2003, £8.8 million above previous forecasts.

The company has earmarked Europe, China and the rest of Asia as potential growth markets.

Overall first-half operating profits before exceptional items, goodwill and amortisation fell from £159 million to £139 million on £1.6 billion sales (£1.7 billion). The interim dividend was kept at 4.6p.