19 August 2015 – interim results

The group has published its interim results for the six months to 30 June and these have revealed a significant increase in revenue to £13.6m (2014: £10.9m) due to the impact of the Madrox acquisition in June 2014.  The latter business, a supplier of plastic packaging based in Poland, was a major development for the group and this has produced an excellent performance since it was acquired.  This has helped adjusted pre-tax profits increase to £1.26m (2014: £0.67m) although an increase in the tax charge meant that adjusted earnings per share on continuing operations only increased to 3.8p (2014: 3.6p).  The interim dividend was raised to 2.5p (2014: 2.25p) and net debt has reduced to £2.3m from £4.1m at the start of the period.  Pre-tax profits for the full year are forecast to be £2.8m for earnings per share of 13.1p, rising to £3.4m and 16.1p next year.  The shares have risen from 158p since our original tip but they remain ATTRACTIVE.