13 September 2016 – interim results

Interim results covering the first half of 2016 were in line with expectations.  Sales for the first six months of the year were slightly lower at £17.0m (2015: £17.1m).  The rate of like-for-like sales decline slowed significantly.  Underlying profit before tax was 15.0% lower at £3.8m (2015: £4.5m) but has been maintained at the same level as the second half of 2015.  Underlying earnings per share were 5.0p (2014: 6.0p).  Underlying net cash from operations declined by 6.3% to £4.1m (2015: £4.3m) and net debt at 30 June 2016 was £19.2m (2015: £38.0m).  A significant placing at 100p per share in June bolstered the balance sheet and should mean that downside from the current level is relatively limited in the near term.  BUY.