26 November 2010 – half yearly report and distribution agreement

Interim results have been released, covering the six months to 30 September 2010. These were reasonable, with basic and diluted EPS of 1.4p before exceptional items. An announcement has also been made with regards to a distribution agreement for Food Detective in India, which is also positive news. However, both pieces of news are relatively insignificant when taking into account the proposed acquisition which is awaiting approval. The sizeable placing at 12p which will accompany this deal would deter us from buying at the current market price and we therefore rate the shares as a HOLD.