28 April 2011 – interim results

In our last update on 1 March we suggested that readers should sell at 26p ahead of interim results. With the price having fallen by over 30% from that level there is considerable scope for recovery if forecasts for the full year are met, as the company still expects. However, performance in the first half of the financial year, covering the six months ended 28 February 2011, was poor. Revenue slipped to £15.0m (2010: £16.8m) and a loss before tax of £2.2m was recorded versus a profit before tax of £350k a year earlier. Net assets have fallen to under £1m and that includes intangible assets of over £12m. On balance this is still one we would AVOID for the time being.