2 April 2012 – final results

Results for the year to 31 December 2011 were reasonably solid given the tough backdrop against which the company is working.  Underlying profit before tax slipped from £6.0m to £5.5m, equating to underlying earnings per share of 9.2p (2010: 10.4p).  A statutory loss per share of 5.5p was recorded versus earnings per share of 10.4p in 2010.

The balance sheet is in good shape, with net cash of £8.0m.  This has allowed the final dividend to be raised to 3.6p (2010: 3.5p), taking the total for the year to 5.5p (2010: 5.3p).  The shares are therefore yielding 8.7% and this is very attractive.  We feel that the company has scope to make significant progress over the longer term in an industry ripe for consolidation.  BUY.