26 March 2020 – final results
Results for the year ended 31 December 2o19 have been released. This represented a solid period of trading for the company, which has now moved into an ongoing net cash position. Revenue increased by nearly 20% to £38.8m compared to £32.5m in the prior year. Profit before tax prior to underlying items was £2.85m versus £2.08m in the previous year. Basic earnings per share were 40.5p compared to 32.3p on the same basis a year earlier. The overall net cash position increased dramatically from £107k at the end of 2018 to £1.85m at the end of 2019. Net assets increased during the year from £12.4m to £14.3m. A final dividend of 3.04p per share has been declared versus 2.89p last year and there will also be a special dividend of 2.0p per share, taking total dividends for the year to 6.60p per share. The ex-dividend date will be 14 May, with payment around 2 July. Finally, the company’s defined benefit pension schemes remain an issue. The deficit of the schemes as at 31 December 2019 reduced to £2.48m compared to £2.83m at 31 December 2018. On balance, even taking into account the threat of Covid-19, it is impossible to conclude anything other that the shares are mispriced as a result of the current turmoil around the world. The shares are a BUY.