2 August 2010 – new orders

The group has announced orders worth £2m from BAE Systems to supply high pressure air cylinders for both a new submarine and two new aircraft carriers.  The cylinders will be used to store ballast air, breathing systems and emergency back up systems in the submarine and bulk storage of breathing air on the aircraft carriers.  For a company which turned over £9.7m in the six months 3 April 2010, these are useful orders and confirm the group’s position as market leader for the European naval market.  They should also provide a platform from which the group may gain more business globally.  With earnings per share forecast to be around 23.5p in the year to 30 September 2010, the shares look far TOO CHEAP.