26 November 2013 – final results
The software and IT group has announced another excellent set of results for the year to 30 September with pre-tax profits rising by 31% to £1.94m (2012: £1.48m) on turnover just over 3% higher at £13.8m (2012: £13.4m). Diluted earnings per share rose to 3.7p (2012: 2.8p) and the dividend was increased to 1.5p (2012: 1.2p). Strong cash generation led to net cash at the year end of £3.66m. The results have benefited from increased margins as the group has supplied more of its own proprietary software where margins are clearly higher and it continues to win new customers. Although the group continues to invest in its product development programme, there is also scope to expand the offering through acquisition. In August, the group acquired Catan Marketing and after the year end it has purchased One iota Limited. The latter cost £3.13m up front with deferred consideration of up to £2.3m payable depending on trading performance over the next three years. To help fund this, the group raised £3.5m through a share placing of 6.36m shares at 55p in October so that net cash at 22 November was in excess of £4.5m. Long term prospects for the group look good and the shares remain a LONG TERM BUY.