29 January 2015 – interim results

After yesterday’s profit warning, the group has released its interim results for the six months to 30 November which are really very poor.  Revenue for the period has slumped to £7.3m (2013: £20.1m) with sales in the Wireless division collapsing to £3.9m from £16.5m.  This has resulted in a pre-tax loss before exceptionals of £4.11m, compared with a pre-tax profit in the first half of the previous year of £0.47m.  Net cash at the period end was £0.2m compared with £2.5m at the end of May although net proceeds of £2.0m were raised from a placing in December.  No other news was forthcoming and we maintain our recommendation of HOLD.