19 May 2011 – interim results

Disappointing interim results have been reported by technology group OMG with revenues falling to £13.3m (2010: £14.4m) in the six months to 31 March, largely due to the delay of one large project, which is now expected to come into the second half.  The group has also reported an adjusted loss before tax of £0.3m (2010: profit of £1.4m).  The group still had net cash balances of £2.3m at the end of the period, (30 Sept 2010: £6.1m) although it is disappointing to see such a large cash outflow even though £1.3m was spent on an acquisition.  A cautious statement on trading leads us to reduce our recommendation to HOLD.