12 May 2011 – final results

The technology group has produced very impressive results for the year to 31 January with revenues increasing to £50.0m (2010: £29.9m) and pre-tax profits before exceptionals rising to £5.1m (2010: £1.6m).  Earnings per share have risen to 4.2p (2010: 1.50p) and the dividend was raised to 0.8p (2010: 0.5p).  Gearing at the year end was 29% (2010: 40%).      

The last year benefited from the acquisition of Hartest Holdings, the integration of which is now largely complete and further acquisitions may be on the cards as the group seeks to expand yet further.  The current year has started well and the focus on high margin, niche markets is clearly sensible.  The group has now adopted a new centralised operating model allowing bolt-on acquisitions to be absorbed more easily.  We believe that profits should increase to £6.7m in the current year with earnings per share rising to 4.7p as a higher tax charge kicks in.  The shares remain a BUY.