19 July 2011 – interim results
A solid set of interim results has been released by the supplier of public transport CCTV and other monitoring systems. Revenue for the six months ended 30 June was up 39% to £7.8m (2010: £5.6m) and profit after tax jumped by 76% to £530k (2010: £301k). This translated into earnings per share from continuing operations of 0.57p (2010: 0.37p) and puts the company well on track to hit forecast earnings of 1p per share for the full year.
The surplus freehold property in Mitcham, Surrey is an attractive asset which may well be sold off in the near future. Planning permission for light industrial units to be constructed on the site has been granted subject to the completion of a s106 agreement. Further developments on the property could help the share price move higher. The shares are up 146% since our tip and although there is positive momentum in the business it seems difficult to justify chasing the price higher. TAKE PROFITS.