26 April 2010 – trading update

We have been surprised by the weakness in the share price of the company over recent weeks as February’s trading update was pretty encouraging.  Maybe this morning’s update will reverse the trend of share price weakness as the company has revealed that trading continues to improve with the full year results to 31 March 2010 expected to be in line with expectations.  Sales towards the end of the year were very strong and order books are now higher than the average experienced over the last year.  An improving world economy and the group’s successful development of new business are two factors which are expected to provide further growth over the coming year.  With profits in the new financial year likely to rise to £3.0m for earnings per share of 8.1p it can be seen that the shares are very cheap.  We believe that there is considerable upside in this stock although it is not that easy to pick up shares in the company and buyers may have to accumulate stock gradually to build a position.  BUY.