7 June 2016 – final results

The group has announced its results for the year to 31 March and these have revealed a slight increase in revenues to £19.2m (2015: £18.5m) with adjusted pre-tax profit rising to £1.95m (2015: £1.71m).  Underlying earnings per share were 9.32p (2015: 8.55p) and the dividend for the year was maintained at 5.7p.  At the year end the company had net cash of £2.01m (2015: net debt of £2.09m) helped by the disposal of the fuels business for £3.5m in January.  This sale will allow the group to focus on the core Leisure and Vending businesses.  The group has admitted that trading conditions remain difficult although it feels well equipped to deal with these.  Nevertheless, although the yield of 6% may appeal to income seekers, we believe there is probably better growth potential elsewhere so we reduce our recommendation to HOLD.