31 October 2011 – interim management statement

Although trading across the private sector has remained in line with expectations, pressure in the public sector means that full year profits will be lower than previously expected.  Part of the problem has been a delay in certain government departments moving over to the group for their office supplies under the agreement which came into operation at the start of October.  This has led to lower than expected initial sales and although these are now steadily increasing this factor will have an adverse effect on profits for 2011.  The group believes that next year should not be affected but the shares have been marked down on the news.  However, with the stock now yielding 7.8%, further downside should be limited.  LONG TERM BUY.