10 October 2016 – final results
The engineering and environmental consultancy has announced its final results for the year to 30 June, revealing a 9% increase in revenues to £91.3m (2015: £83.9m), whilst adjusted pre-tax profits rose 33% to £3.6m (2015: £2.7m). Earnings per share on the same basis were 41% ahead at 7.6p (2015: 5.4p) and the proposed dividend for the year is 50% higher at 3p (2015: 2p). Net funds at 30 June were 45% higher at £5.5m (2015: £3.8m). These are excellent results with the group more than achieving its target established three years ago of tripling pre-tax profits to £3.3m and the group is now focused on increasing its adjusted operating profit margin to 6% by 2019 from the existing level of 4%. So far the group has not noticed any effect from the result of the EU referendum although its medium term prospects will depend to some extent on the UK Government’s plans on infrastructure spending. Nevertheless, the shares do not look expensive and we continue to rate them as a BUY.