17 May 2010 – trading statement

In a more positive trading statement, the support services group Spice has confirmed that trading for the year to 30 April has been in line with expectations.  The group’s pre-tax profit before exceptionals will be slightly ahead of last year’s £32.3m, whilst net debt at the year end was £118.5m.  The restructuring following the strategic review will result in an exceptional charge of between £8m amd £9m which will be shown in the year just ended.  The group has also confirmed Martin Towers as CEO.

The group now looks as if it is on the road to recovery with the business having stabilised and the shares should probably continue to move up.  We retain our recommendation of BUY.