TOOL MAKER Oglesby & Butler returned a revenue increase of 5 per cent for the quarter ended June 2008, but said tough trading conditions lay ahead.

The company, which manufactures Portasol gas-powered soldering iron and glue gun products, warned that weakening consumer demand and currency-related issues had adversely affected its revenues. Moreover, it added that adverse trading conditions would likely continue and affect the company's performance.

"In line with other Irish export-driven companies, our revenues continue to be adversely affected by the worsening worldwide downturn in consumer demand and the weakness of both the US dollar and the pound sterling," the firm noted in a statement.

"Costs are being controlled and every effort is being made to maintain existing markets and to introduce new products into new markets."

The group said it had agreed the second phase of a research contract for a major international company, which was expected to make a positive contribution to results when it was completed next year.

Oglesby has also begun promoting a herbal vaporiser, but said it was too early to determine what impact it would have on revenues.