18 May 2011 – final results

Slightly disappointing final results have been reported by the group for the year to 31 March.  Although revenues rose by 2.8% to £396m, pre-tax profits fell by 10% to £16.1m with earnings per share falling by the same amount to 21.2p.  The second half of the year was affected by subdued levels of business to business volume growth with the poor weather at Christmas disrupting the group’s peak trading period.  The total dividend for the year was maintained at 18.2p, giving the shares a yield of 6.5% and net cash at the year end was £17.4m (2010: £15.7m).  Although trading in the new financial year has started as expected, it seems hard to see what the catalyst will be to move the shares higher in the short-term.  We therefore rate the shares as a HOLD.