6 October 2015 – disposal/trading update
The group has disposed of its Dutch subsidiary, Grafenia BV, for cash consideration of €2.35m as it has concluded that the strength of sterling makes the ongoing supply of print to the Eurozone unattractive. The group will now focus on its core operations in the UK and Ireland. Although the company has previously stated that the current financial year will be second half weighted, and second half trading is expected to be in line with expectations, the poor performance of the first half will lead to full year profits being materially less than expected. A number of senior management changes have also been made and we reduce our recommendation to HOLD.