8 November 2011 – interim management statement

The accountancy group has revealed that in the period from 1 July to 7 November trading has been at the lower end of expectations.  Although the group’s trading is skewed towards the second half of the financial year which ends in June, costs are incurred at a steady rate throughout the year.  Thus most of the group’s profits will be earned in the second half of the year.  Debt reduction remains a priority for the group with cash outflows in the first half also expected to be reversed in the second half.  Although long term the shares should recover as they stand on a very low rating, it is hard to see what the catalyst will be for any short-term excitement.  The shares are a HOLD.