5 June 2013 – interim results
The software and services group has announced a strong set of interim results for the six months to 31 March with pre-tax profits on continuing operations more than doubling to £0.85m (2012: £0.41m). Earnings per share rose sharply to 1.8p (2012: 0.4p) due to a lower tax charge and the interim dividend was raised 30% to 0.65p per share (2012: 0.5p). Strong cash generation led to net cash balances of £4.5m at the end of the period, worth over 10p per share. These were good results given the challenging trading environment and the second half has also started well with the group gaining new customers and orders. The group is seeing increasing demand in its higher margin growth markets such as ecommerce and mobile solutions and it is on track to make pre-tax profits in the year to 30 September of £2.1m for earnings per share of 4.1p. With further progress likely going forward and cash in the balance sheet worth over 10p per share we maintain our buy recommendation with a share price target of 60p. BUY.