4 June 2013 – final results
Annual results to 31 March have come in ahead of expectations as the group benefited from a strong second half. Although revenues declined to £125.7m (2102: £139.9m), the group reported an adjusted profit before tax of £0.7m (2012: loss of £5.8m). Earnings per share on the same basis were 0.9p (2012: loss of 7.4p). The group ended the year with unrestricted cash balances of £14.8m (2012: £16.4m), in line with expectations as the group spent £6.2m during the year dealing with legacy issues – this cash cost is expected to reduce significantly in the current year. The group’s current trading is continuing the better performance seen in the second half of the year and it expects adjusted pre-tax profits in the current financial year to be ahead of expectations. We have therefore upgraded our forecast to £3.5m for earnings per share of 4.6p. Although this seems to make the shares look expensive they have considerable momentum and with further significant increases in profits and earnings expected next year the shares are a FIRM HOLD.