7 September 2011 – interim results

The group has issued interim results covering the six months to 30 June showing a modest increase in revenues to £23.2m (2010: £23.1m)  with pre-tax profit rising by 9% to £1.58m.  Earnings per share were a same again 3.9p as a higher tax charge negated the increase in profits.  The interim dividend was raised by 10.5% to 1.05p (2010: 0.95p).  Helped by the sale of a surplus property in April, net cash at the period end as £3.7m (31 December 2010: £1.67m).  These were good figures given the internal changes at the group which has seen the appointmtnt of a new chief executive (reported last week) and the uncertainty in global markets.  Looking forward, although a slowdown in the existing core business is expected in the second half, any weakness should be offset by the introduction of new key customer wins achieved in the first half.  At this stage we are maintaining our 2011 pre-tax profit forecast at £3.1m for earnings per share of 8.3p.  The shares remain a BUY.