4 June 2013 – final results
The group has released its final results covering the 15 months to 31 March and these are very poor as expected. On revenues of £318m, the group reported an underlying pre-tax loss of £21.5m and it ended the period with net debt of £41.2m. However, these results are not particularly relevant when looking at the group going forward due to the restructuring taking place. A right issue that raised £44.8m (net) closed just after the end of the period and that has considerably strengthened the balance sheet whilst the group also has put in place a credit facility of £35m after completion of the rights issue. The group retains a strong market position, has made senior management changes and retains the support of its major customers. This should allow it to improve its financial performance this year, even though trading conditions remain tough, but it has a UK order book of almost £200m and capacity in the Indian business is being expanded. With the group set to benefit from its strong market position going forward we believe that the shares remain a BUY FOR RECOVERY.