As a result, CEO Malcolm Miller says he expects full year sales to be ahead of 2007 with earnings similar to those of last year. Growth was mostly attributed so sales outside of the Americas, which now account for some 62% of total group sales. In the emerging markets of eastern Europe, the Middle East and Africa, and Asia Pacific, first half revenue grew by 52.5%, 47.0% and 26.6% respectively.

‘The near, Middle and Far East are doing exceptionally well, but it’s certainly weaker across Europe, notably in the UK and Spain, while the US remains down,’ said CEO Malcolm Miller.

In the US, first half sales were down by 15% compared to the same time last year and all segments declined. Sales to boatbuilders fell by 14% and sales to dealers and wholesalers dropped by nearly 20%. Business with retailers, which were first to see the weakness in the US boating market towards the end of 2006, saw sales decline by only 7.6%.

In the UK market, sales were down by nearly 12% due to slow demand from retailers and dealers. First half trading was also tough in northern Europe — particularly in Sweden and Holland — where sales fell by 4.8%. In southern Europe, sales were down by 6.5% — mostly on account of poor trading in Spain.

‘Trade in Spain across most goods and services has continued to be very poor since February this year and the marine market in general has suffered,’ said Mr Miller. ‘This country helped pull the southern European region down in sales revenue by 6.5% compared with the six months to the end of June 2007.’

A focus on group restructuring means that Raymarine's new product launch programme has been much less prolific than recent years — just 9% of revenue was generated by new product in the first six months of 2008 compared to an average of 25% during the same time last year.

Mr Miller is confident the stream of new products due for the back end of this year will help bolster next year's results: ‘I don't think the market's going to improve in the short term so new products will help improve sales,’ he said. ‘Eastern Europe and the Middle East will continue to give us a boost while the UK remains soft at the lower end.’

Mr Miller expects the US market to remain sluggish for most of 2009, finally picking up toward the end of next year.