4 August 2016 – interim results
The marketing services group has announced its interim results for the six months to 30 June and these have revealed that the group has made solid progress. A simplified two divisional structure has reduced costs whilst still allowing the group to address the needs of its clients. Although revenues for the period were only 0.2% higher at £174.9m, adjusted pre-tax profits were 21% higher at £6.5m, with earnings per share on the same basis 20% higher at 2.42p. The interim dividend was raised 10% to 0.81p. Net debt at the end of the period had been reduced to £34.9m from £43.4m a year earlier. The company has won new, long-term contracts and with full year pre-tax profits likely to be £16.2m for earnings per share of 6p the shares look cheap. BUY.