7 June 2019 – trading update

A detailed but disappointing trading update has been released.  There has been a weak second quarter and growth in revenues in the second half of the year is unlikely to make up for this.  Revenue in the full year is now expected to be lower than previously anticipated.  Margins are expected to remain in line but overheads will reflect investment in additional resources devoted to operational and regulatory matters.  This means that adjusted profit before tax is expected to be below the previous year.  On a more positive note the group holds net cash and continues to be cash generative.  We believe that long term prospects remain good and rate the shares as a BUY below 3p.