7 March 2012 – final results

The group has announced its results for 2011 and these have revealed revenues at a similar level to 2010 at £44.9m (2010: £44.8m) although normalised pre-tax profit fell to £2.64m (2010: £2.91m).  Earnings per share on the same basis fell to 6.5p (2010:6.7p) although the total dividend for the year was raised to 2.8p (2010: 2.5p).  Strong cash flow led to net cash at the year end of £2.94m (2010: £1.67m).    Although the weakness in demand experienced at the end of 2011 has continued into the start of 2012, the group has continued to win new business and is confident about prospects for the year.  A recovery in pre-tax profits is forecast for the current year with £3.5m in prospect for earnings per share of some 9.3p.  We re-iterate our recommendation of BUY.