4 March 2011 – trading update

A disappointing trading update has been released by Brulines, the provider of monitoring systems to pubs and petrol stations.  A weaker performance in the second half means that pre-tax profits for the year to 31 March are likely to be around £4.0m rather than previous expectations of £4.8m.  The shortfall is due to a number of factors – increasing numbers of pub closures, delays in companies spending plans and the very poor weather have all played a part.  The challenging market conditions look set to continue although the company is successfully introducing new products and remains confident about future prospects.  It also aims to continue its progressive dividend policy and if it increases its full year payout to 5.7p from 5.5p last time the share will yield 6.5%.  HOLD.