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.