24 March 2011 – final results

Results for 2010 were very reassuring and the fact that the final dividend was maintained, leaving the total payout for the year unchanged at 11.4p per share, should offer support to the share price.

Profit before tax was £4.6m versus £8.1m a year earlier and this saw earnings per share fall to 12.1p (2009: 17.2p). However, underlying profit before tax slipped less drastically to £11.2m (2009: £13.1m) and this is more meaningful. Although net debt edged up to £31.4m from £27.8m this makes the current market capitalisation of £45.0m look too low given the company’s track record and prospects. We continue to rate the shares as a BUY.