26 September 2011 – interim results

For the six months to 30 June 2011 revenue slipped to £30.9m from £32.6m a year earlier.  Although gross profit remained static at £8.4m and operating costs were trimmed to £7.1m (2010: £7.4m), non-recurring charges of £2.9m were suffered, relating to Falcon.  This saw a loss before tax of £2.4m versus a profit of £117k in 2010. 

On a brighter note, basic earnings per share rose from 0.09p to 0.26p excluding the non-recurring charges.  An interim dividend of 0.13p (2010: 0.12p) is also pleasing, as is the fact that net cash balances increased by £0.6m to £11.8m during the six months.  Although it may take some time for the share price to rally, we feel that the price is too low and maintain our BUY rating.