5 August 2013 – trading update and acquisition
The company has issued a trading statement covering the first half. Profit is expected to be below expectations at around £1.4m, although revenue of £79m is in line with expectations and net cash should be around £5.0m. An interim dividend will be paid but is likely to be cut following a review, which is clearly disappointing for holders.
An acquisition has also been detailed, Exway Coachworks Ltd. in the South West. This is unlikely to have a material impact but is expected to provide a better return on capital than the average across the group. Although the trading update is slightly concerning the shares look cheap based on fundamentals and we retain our BUY rating.