28 March 2012 – final results
Results for 2011 were impressive, although a significant improvement in profitability was already expected. Revenue jumped by 39% to £493m (2010: £355m) and profit before tax was £21.6m (2010: £3.4m). Basic earnings per share were 20.56p versus 3.16p a year earlier.
One concern has been the level of net debt held and although this figure has fallen to £124.4m at the period end (2100: £132.8m) it is quite sizeable. Nevertheless, the shares trade on a low multiple of earnings and there must be scope for considerable upside given the substantial levels of cash currently being generated. On balance we retain our BUY rating.