Despite the best efforts of management to refocus the company in recent years, Unidare's annual results did not make for happy reading earlier this week. Although the figures were in line with expectations, the company issued what effectively amounted to a profit warning when it told investors it would "face a challenge" to improve on the 1998 results next year. It pointed to the dilutionary impact on earnings of the recent sale of Southborough International and the uncertain market conditions facing its Centrajet and Oerlikon businesses, particularly in the British market.

All of which raises questions as to where the engineering group goes from here. With a chequered earnings' history and very modest growth prospects, at best, in its current businesses, the company will find it hard to attract those seeking earnings growth in the increasingly competitive investment environment likely to follow the introduction of the euro.

While the strong dividend may be attractive to private investors who need an income, the company badly needs to make a solid turn-around type acquisition if it is to move forward in any meaningful way.

But time may not be on its side. Following the recent downgrading by analysts of their 1999 forecasts, the company is trading at a significant discount to the British engineering sector where US firms have been active on the takeover trail of late.

Alternatively, if bid interest or an acquisition fail to materialise, management - like that at Jones - may eventually have to consider going the private route. An old stalwart of the Irish stock market Unidare may be, but that is likely to count for little in the brash new world of the euro.