5 July 2012 – trading update

The company has noted that trading for the six months ended 30 June 2012 was broadly in line with the expectations outlined in the recent AGM statement.  Sales were already set to be below that reported for the same period last year due to the underlying economic environment and the decision to withdraw from a number of low margin legacy contracts.  The consequent impact upon profits has been partially offset by a number of new business wins and continuing cost reduction.

Business eins in the first half are expected to be felt in the second half of 2012.  It is also pleasing to hear that the company is currently undertaking pre-production trials for two significant contracts for programmes which are due to commence before the end of the year.  Potential acquisitions which complement current activities are being weighed up, which could add further value.  BUY.