21 December 2017 – trading update

The company has reported that it is generating double digit sales growth during the second half versus the first half, and expects to show over 15% growth in the second half versus the same period a year earlier.  Due to the increase in sales the company requires additional working capital so it  has secured access to a new £1.25m invoice discounting facility with Close Brothers.  This new facility requires a number of technical changes to the terms of the existing loan notes,  £60k of which are held by directors of 21st Century Technology.  Given the terms we do not believe that this is an issue.  We continue to rate the shares as a BUY.