7 December 2012 – interim results
An excellent set of figures has been released by the company, accompanied by bullish commentary on future prospects. Although revenue fell by 7% to £107.4m, profit before tax rose from £17.0m to £20.0m. This translated into earnings per share of 3.93p versus 3.23p a year earlier. Net cash has risen to £70m, broadly a third of the current market capitalisation, and the company has more cash than it needs. The interim dividend was lifted by 20% to 1.5p and additional returns to shareholders are being considered. The shares still look inexpensive despite a strong rally since our recent tip. BUY.