2 August 2011 – results/placing
Disappointing results for the year to 31 May have been reported by the telecoms group with revenues on continuing operations much the same at £15.5m (2010: £15.6m), although the operating loss before exceptional charges rose to £5.3m (2010: loss £0.3m). The acquisition of one of the group’s key customers by a competitor in January led to a sharp reduction in sales which adversely impacted performance. The acquisition of Isotek last November has given the group access to additional markets and the business is being integrated into the group, whilst cost cutting measures have also been implemented.
The group has also announced a placing of around 6.2m shares at 22.5p to raise £1.3m for the company. The proceeds of the placing will be used for working capital purposes. Although the company thinks that prospects going forward are promising we believe that there are better investments elsewhere – the shares are a WEAK HOLD.