29 August 2013 – interim results
The interim results covering the six months to 30 June have revealed a 5% increase in revenue to £119.2m although underlying pre-tax profit declined to £2.0m (2012: £3.9m). The group’s office products business is in long-term decline although the market remains substantial and office2office is a leading force within it. To counteract this, the group is building a Business Critical Services business, with its subsidiary Banner Managed Communications focusing on areas such as marketing, print and document process outsourcing. The profit fall in the first half has been due to a worsening of the sales mix at the core office products business and a delay in contract awards at the Business Critical Services business. Underlying earnings per share were 3.9p (2012: 8.2p) but no interim dividend will be paid. Net debt has fallen to £23.3m (2012: £30.2m). A slow start to the third quarter has not helped sentiment but we do believe that the company is on the right path and maintain our recommendation of LONG TERM BUY.