22 July 2013 – final results
The wireless telecoms group has announced its final results for the year to 31 May and these have revealed a 53% increase in revenues to £40.0m (2012: £26.1m) with adjusted operating profit rising to £3.1m (2012: £0.8m). Pre-tax profit adjusted for amortisation of intangible assets and exceptional items rose to £3.05m (2012: £0.86m). Earnings per share adjusting for these items were 3.2p (2012 2.6p). The group ended the year with net cash 0f £1.9m (2012: £3.7m) due to high working capital requirements in the final quarter of the year as a result of increased activity. The results showed strong growth in the wireless business whilst the broadband business declined sharply. The wireless division now accounts for around 80% of revenues and this is expected to show further growth going forwards with some recovery in sales also expected from the broadband division. Despite this the broadband division is expected to be loss-making again this year. Overall, however, the group is expected to make further progress in the current financial year and, despite the run up in the share price this year, we believe they remain a LONG TERM BUY.