10 May 2013 – loss of contract/director sharedealing
It is disappointing to report that the US Dept of Veteran Affairs has cancelled year two of the contract expected to complete in November 2013. However, this will have no impact on expectations and it is worth pointing out that 70% of the revenues expected in year two of the contract of £1.05m were recognised in the year to 30 April 2013. Although this is disappointing, the company had made ample provision for this possibility given the current state of US Federal budgets and the remainder of the business continues to trade well. As a result, the company is confident of meeting market forecasts for the year to 30 April 2014. The directors have shown their confidence in the company as four of them have bought a total of 190,000 shares at prices at prices ranging from 20.125p to 21.35p. The share price fall provides an opportunity to BUY.