29 June 2010 – interim results
The current caution being seen in the UK oil and gas sector has meant that group sales at Cosalt have fallen to £48.3m (2009: £52.8m) in the six months to 2 May. Pre-tax profits before exceptionals rose to £1.0m (2009: £0.5m) helped by the lower cost base following last year’s restructuring. Earnings per share fell to 0.17p (2009: 0.41p) due to a large increase in the number of shares in issue and no dividend was proposed. Net debt has fallen to £20m (2009: £33m). Trading at the group is traditionally stronger in the second half and although the first two months have been a bit slow, there are signs that activity levels are increasing. The group has won a new framework contract worth over £30m over the next 8 years with 12 Fire and Rescue Services in the South East to supply protective equipment and it has retained all its major contracts. Clearly recovery at the group may take some time but at the current price the shares look an EXCELLENT RECOVERY PLAY.