13 September 2010 – final results

Following the change in year end to 30 June, the IT group has announced its results for the 18 month period to 30 June 2010.  However, to provide a  more meaningful comparison, the group has also announced results for the year to that date.  These show that turnover rose by 20% to £43.8m (2009: £36.4m) with adjusted pre-tax profits rising by 28% to £6.6m (2009: £5.2m).  Earnings per share on the same basis rose by 29% to 20.1p (2009: 15.6p) and the annual dividend was maintained at 0.5p. 

These were excellent results given the challenging trading conditions and the strong cash generation meant that net debt had fallen to £11.0m at 30 June (30 June 2009: £15.8m).  The group made three strategically important acquisitions in the period March – June 2010 which will significantly enhance its growth opportunities and a record number of new deals have been signed in the last 12 months.  Recurring annual income from software licence fees and associated support has increased to £17.4m, representing some 40% of annual revenues and the new business pipeline remains encouraging.  In the year to 30 June 2011, pre-tax profits are forecast to increase to £7.8m for earnings per share of 22.4p.  The shares are CHEAP.