A hi-tech firm has seen its fortunes slide by more than 40 per cent, thanks to the impact of the recession.

Electrocomponents, which employs 80 staff at based at its Oxford Business Park headquarters, made a pre-tax profit of £24.8m for the half year up to September 30, compared to £42.2m for the same period last year.

But chief executive Ian Mason said sales have picked up recently and is expecting the next six months to see a return to growth.

He added: “A year ago it felt as if we were falling off a cliff but now sales are getting better and the rate of decline has reduced.

“People are placing more orders which is hopefully a sign of confidence, although I am not making any commitment about the future.”

Mr Mason said e-commerce was a major growth area for the bsuiness, now accounting for 43 per cent of sales.

Last April the firm cut 470 jobs around the world as part of a bid to cut costs by £18m but Oxford was unaffected.