20 October 2011 – trading update

A trading update covering the six months ended 30 September 2011 has been released.  Although the second half of the year tends to be stronger than the first in terms of revenue and profit, in line with contract renewals, performance in the first half has been good and the company currently expects to meet expectations for the full year.

The full impact of recent acquisitions is yet to feed through into the numbers and we see the likelihood of further acquisitions as a positive development.  The company had £4.3m of cash as at 30 September 2011 (2010: £4.6m), even after the payment of £1.1m on the final dividend and £1.3m in respect of the consideration for the acquisitions of Data Discoveries Ltd and Advanced Checking Services Ltd.  This means there is plenty of flexibility to fund acquisitions and we are therefore encouraged by the company’s position.  BUY.