18 July 2012 – final results
For the year ended 30 April 2012 group revenue was 5.0% lower at £128m (2011: £135m). A strategic exit from low margin commodity snack products and a reduction in Easter confectionery sales are to blame. Group adjusted profit before taxation was down 17.5% to £5.5m (2011: £6.7m). Group adjusted diluted earnings per share fell 12% to 33.8p (2011: 38.5p). Net debt at year the year end was reduced to £10.8m (2011: £14.9m). The dividend was increased by 33% to 3.0p per share (2011: 2.25p), with only one dividend payment per year being made. The company has stated that net assets of £47.0m represent £3.55 per share (2011: £3.50) and although this will offer support, it should be noted that goodwill is in excess of £30m.
Overall these were a steady set of numbers given the trading environment. The shares trade on a low multiple of earnings and we feel that a BUY rating remains deserved.