28 May 2020 – interim results

Interim results have been announced.  For the period ended 29 February 2020, turnover was £51.7m (2019: £58.8m) and profit before tax was £2.5m (2019: £5.6m).  Adjusted basic earnings per share were 9.60p (2019: 20.98p).  Diluted earnings per share, on the same basis, were 9.58p (2019: 20.67p).  The business remained highly cash-generative throughout the period, with net cash held at the end of the period of £16.8m versus £18.6m a year earlier.  Since March 2020 Covid-19 has deeply impacted sales.  Many retailers in the UK and overseas closed their shops and stores and the distributors for international markets substantially scaled back their operations. Although online channels have remained open the overall impact of the pandemic has been severe.  Nevertheless, the company has a strong balance sheet and should bounce back relatively quickly.  The shares are a LONG TERM BUY.