– 26.5p

20 February 2013 – trading update

The company has said that trading in the second half of the year has been weaker than anticipated across its various European channels.  With increased marketing expenditure on new initiatives it is now likely that results will be materially behind market expectations for the current year.

On a more positive note it is still believed that new initiatives such as and W3P provide confidence for the future.  Since the company’s last update, the first W3P Licenses have been granted in the UK.  These Licenses generate monthly ‘system fees’ along with incremental print revenues.  Of even greater importance to investors, the final dividend is set to be held and this means the shares are now close to providing a double-digit yield.  Although there may be weakness in the near term the shares are good value based on fundamentals and we retain our BUY rating.

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