14 June 2011 – interim results

Results for the 26 weeks to 2 April 2011 showed revenue up to £10.3m (2010: £9.7 m) but underlying operating profit fell to £0.1m (2010: £1.8m).  A pre-tax loss of £0.3m was reported versus a pre-tax profit of £1.5m in 2010.  This translated into a basic loss per share of 1.9p (2010: earnings per share 9.6p) but the interim dividend was maintained at 2.4p per share.  The balance sheet remains strong, with net cash of £2.7m (2010: £5.2 m) following the acquisition of Hydratron.

Further acquisitions could be on the cards and this could drive further value into the business.  However, in the near term the shares may well drift if no deals are are announced.  Although we believe in the long term story we keep the shares as a HOLD for now.