12 June 2012 – interim results

The interim results for the 6 months to 31 March have revealed revenues of £12.6m (2011: £10.3m) with a profit before tax of £0.46m (2011: loss of £0.31m).  Earninhs per share were 3.1p (2011: loss of 1.9p) although the progressive dividend policy was maintained with the interim dividend increased to 2.5p (2011: 2.4p).  The group has maintained a strong balance sheet with net cash of £3.5m at the end of the period – this compares with net cash of £2.9m at the year end at 30 September.  It is clearly pleasing that the group has returned to profitability and the group’s two main divisions are both doing well with increases in their respective order books.  Indeed, the order books for the financial year to September 2013 are already starting to fill.  Strong demand from the oil and gas sector means that the group is confident of a strong second half performance as well as further growth next year.  The shares are a BUY.