10 November 2014 – interim results

A reasonably solid set of interim results has been released.  Although turnover during the period slipped to £8.50m (2013: £10.08m), profit before tax increased by 19.4% to £0.37m (2013: £0.31m).  As at 30 September net cash was £1.06m (2013: £0.48m). This reflected strong cash generated by operating activities, up to £0.74m (2013: £0.39m).  An interim dividend of 0.50p per share (2013: 0.33p) was declared.  On the face of it the company is evolving well and there is undoubtedly potential for upside over the longer term.  However, given recent strength in the share price we downgrade to HOLD.