29 September 2010 – interim results

Half yearly results for the six months to 30 June revealed a 28% increase in revenue to £7.8m (2009: £6.1m) with pre-tax profits rising by 27% to £1.4m (2009: £1.1m).  Earnings per share were 7% higher at 11.5p (2009: 10.7p) with the lower rate of growth due to an increase in the number of shares in issue whilst the interim dividend was raised by 11% to 1.55p (2009: 1.40p).  Despite the general economic uncertainty, trading improved in the majority of the group’s activities and this is expected to continue in the second half of the year.  Continued strong growth was seen in the Middle East and large contracts were also won in South Korea and Syria.  Strong cash flow during the period meant that gearing at the end of June was 31% (2009: 24%) despite investing £1.5m into the hire fleet net of financing.  With profits for the full year likely to reach £3.8m for earnings per share of 23.7p the shares look cheap and are a BUY.