28 September 2016 – interim results
In the six months to 30 June the group reported revenues of £6.4m (2015: £4.7m) with the increase due to a full six month contribution from Passenger Systems, although this was eroded by lower revenues at the Fleet systems business. The decline in revenues at the latter was due to delays in new vehicle orders from UK bus operator customers. Despite this, the group reported an underlying pre-tax loss of £0.25m (2015: loss of £0.05m) although at the end of the period cash balances were £1.2m (2015: £1.3m). These are clearly disappointing results and, as previously indicated, full year revenues look set to come in below the level od last year whilst a significant loss for the year as a whole is likely. Although the outlook is challenging, the low level of the shares means that they are not really worth selling and so we maintain our recommendation of HOLD.