6 December 2011 – final results

The group’s annual results to 30 September have shown a drop in profits as expected with the year being impacted by low demand for deepwater oil and gas platforms.  Despite this, revenue for the year increased to £23.1m (2010: £21.7m), although pre-tax profits dropped to £0.6m (2010: £3.5m).  Earnings per share fell to 3.5p (2010: 22.3p), although the total dividend was maintained at 7.2p.  Net cash at the year end was £2.9m (2010: £6.5m) and this was after investing £5.0m during the year in capital investment and the acquisition of Hydratron in October 2010.  The group has reported that the recovery in capital expenditure  in the deepwater sector is now underway with orders received at the group increasing in the second half of the year.  It would seem as though the group is over the worst of the slowdown in its markets and with recovery likely over the next two years the shares should begin to reverse the steady fall of the last few months.  With the support of a dividend yield of 6.3% they are a BUY FOR RECOVERY,