5 September 2011 – interim results
A reassuring set of numbers from AEC Education has reinforced our view that the shares are undervalued. In particular, the net cash position was £3.19m as at the end of June, representing well over half the market capitalisation of £5.52m. Revenues in the first half were £8.93m (2010: £8.64m) and profit before tax was £298k (2010: £346k). Earnings per share came in at 0.5p (2010: 0.7p). Given the protection against downside which results from the cash pile, the shares must rank as a BUY.