11 July 2016 – interim results

The digital entertainment group has announced interim results for the six months to 31 May, revealing an 84% rise in revenues to £33.0m (2015: £17.9m) with adjusted pre-tax profits of £4.2m (2015: £3.0m) being reported.  Earnings per share on the same basis rose to 6.0p (2015: 5.5p) and the interim dividend was raised by 10% to 1.391p (2015: 1.265p).  Strong cash flow led to net cash balances at the period end of £3.1m.  This was an encouraging performance with the acquisitions made in 2015 being successfully integrated whilst the period also saw a record order intake.  The group has a strong order backlog for the second half of the year and expects to build on the first half performance.  We have increased our full year profit forecast to £8.7m for earnings per share of 11.4p and retain our recommendation of BUY.