13 January 2012 – trading update
Although trading conditions have remained difficult in the 3rd quarter of the financial year, covering the 3 months to 31 December, the group’s trading has remained solid with revenue in line with the corresponding period in 2010. Although normalised pre-tax profits are in line with expectations the group has incurred one-off exceptional start-up costs of between $5m-$6m relating to new product introductions for its largest customer although the benefits of this are already being seen. Net cash at the end of the period was $1.2m, the first time since 1993 that the group has achieved a net cash positive position. We retain our recommendation of BUY .