17 September 2019 – interim results

The company has announced its interim results for the six month period to 30 June and these are much as expected with declines in revenue and profitability as indicated in the group’s trading statement of 7 June.  Revenue for the period fell to £5.10m (2018: £5.28m) and this resulted in an adjusted pre-tax loss of £49k (2108: adjusted pre-tax profit of £154k).  Adjusted earnings per share were 0.02p (2018: 0.05p) helped by a tax credit for the period.  Net cash at the end of the period was £0.34m (2018: £0.38m).  These results reflect the difficult trading environment which has been adversely affected by constraints on UK health spending and uncertainty relating to Brexit.  However, despite this, the group has continued to invest in people and product development, strengthening the senior management team with the appointment of a new chief executive in March as well as other senior appointments.  Although trading in the short-term seems unlikely to improve, the longer term picture is more encouraging and we maintain our recommendation of BUY.