21 September 2015 – interim results
The group, which supplies mobile data computing solutions and services, has announced its interim results for the six months to 30 June. These have revealed a slight decline in turnover to £4.43m (2014: £4.59m) and a sharp fall in adjusted pre-tax profit to £45,000 (2014: £214,000). Earnings per share on the same basis were 0.09p (2014: 0.22p) and no dividend was declared. The group had cash balances of £414,000 (2014: £1.41m) at the end of the period, with the reduction being partly due to the purchase of AFS during the period at a cost of £500k and the fact that last year’s figure was flattered by a large customer pre-payment. These results are clearly disappointing although the new chairman has outlined a strategy to cut costs and re-organise the business. This process has already started although the results will not be seen until at least next year. Although there may be little to move the shares in the short-term, we are impressed by the quick action the new chairman is taking and rate the shares a BUY FOR RECOVERY