9 may 2013 – Interim management statement
The Africa focussed business has announced its first quarter results revealing revenues of £39.1m, a similar amount to last year on a like-for-like basis. However, this slower growth (up 0.3%) is largely due to the move away from lower margin business and gross margins have increased by 7.2% to 32.4%. The first quarter is usually the quietest of the year and this year seems unlikely to be any different and the group is confident that full year expectations will be met. However, the increase in net debt to £99.1m at 31 March from £87.2m at 31 December is not a good sign although some of this is down to currency movements. Although it is taking longer than expected for the group to achieve its aims, steady progress is being maintained and we retain our recommendation of BUY for the time being.