17 November 2011 – trading statement

The group has issued a trading update revealing that operating profits for the year to 31 January are now likely to be similar to last year, which is a reduction on previous expectations.  The shortfall is due to lower sales in Europe caused by the well documented problems in the region, although overall business there has proved pretty resilient.  Elsewhere, trading in the UK and the US remains strong and the group is continuing to build up its business in the Far East. It has already opened an office in Shanghai and is currently searching for an office in New Delhi to accomodate expansion of its existing facility.  The long term prospects for the group therefore remain sound and if earnings per share in the current year are the same as last time at 4.2p the shares look cheap.  BUY.