12 September 2013 – interim results
The group has reported a disappointing set of interim results covering the six months to 31 July, with revenues declining to £23.7m (2012: £25.7m) and an adjusted pre-tax loss of £0.3m (2012: profit of £1.2m) being recorded. Exceptional costs of £2.1m were incurred during the period and these relate to the restructuring and other costs. Further exceptional charges are likely in the second half although these are likely to be at a lower level. Net debt had risen to £5.8m at the end of the period compared with £5.0m at 31 January. With orders received in the first half being slightly ahead of last year and a backlog of orders to fulfil in the second half, it is likely that this period will see an improved performance. However, investors are likely to want to see firm evidence of some improvement before parting with their cash and we believe the shares are unlikely to perform in the short-term. HOLD.