2 June 2010 – trading update

In a trading update this morning, the group has confirmed that in the six months to 30 April profits have shown a healthy increase over the same period last year helped by strict controls over costs.  Revenues were down slightly although the level of recurring revenue increased and the group’s order book remains strong.  Good management of working capital led to higher cash levels than last year at the end of the period which will allow the interim dividend to be increased.  Obviously the group would suffer from any reduction in local authority IT spending, but at the moment it remains in good shape and with the shares on a prospective p/e ratio of just 7x they remain GOOD VALUE.