8 September 2011 – interim results

Interim results for the six months to 31 July have come in slightly better than expected with a slight improvement in revenues being accompanied by a 6.6% increase in adjusted pre-tax profits as these rose to £47.1m.  Earnings per share on the same basis were 6.9% higher at 9.3p.  The interim dividend was maintained at 4.4p.  Although these were very creditable results, the group has cautioned that global economic uncertainties together with the limited forward visibility provided by the group’s business model make it hard to predict the short term future.  August’s performance was weak, admittedly against strong comparatives, but profit forecasts for the full year have been pulled back slightly.  However, with a full year dividend likely to be 10.9p, the shares sport a prospective dividend yield of 6.5%.  The shares remain a BUY.