4 September 2019 – trading update
The LED lighting and electro-mechanical system manufacturer has announced contract wins totalling £4m for new products including the provision of equipment for railway rolling stock and an export contract win for LED-based lighting on trams. Deliveries will commence immediately and will continue for at least 18 months with significant potential for further revenue in the longer term. As previously reported, the current financial year to the end of this month remains challenging with continued customer delays to certain contracts which will now be shipped next financial year. Whilst this will have a negative impact on the results for this year, there should be a significant recovery next year helped by the impact of these sales and the sales from the new contracts. The Board says that it is looking to the future with increasing confidence which bodes well for the patient investor. The shares are a LONG TERM BUY.