FKI Plc, the UK-listed engineering group, is to undergo a strategic review that could lead to the sale or demerger of several of its key businesses. 

Likely disposals are thought to be FKI's lifting products and services business and its energy technology division. The company may also consider FKI Logistics and a hardware arm as candidates for a sale, and analysts have not ruled out the possibility of a management buy-out or a sale of the entire group. 

“The success of business development activities, together with sustained strong market demand in the energy sector, has highlighted potential constraints in the group's ability to support the strong organic and acquisitive growth opportunities throughout the group in the medium term.” said Paul Heiden, chief executive. 

“As a consequence, the board is in the process of undertaking a strategic review to establish the most appropriate way forward for the group to maximise shareholder value.”

FKI's profits slightly declined during the six months to 30th September dropping £2.1m from the equivalent period in 2005 to £34m. Turnover increased from £607.4m to £634.5m. 

The review is expected to be completed by the second quarter of 2007.