30 November 2016 – final results
The software and IT services business has announced its final results for the year to 30 September 2016 which have revealed an 11% increase in revenues to £21.3m (2015: £19.2m), with adjusted pre-tax profits rising to £3.4m (2015: £3.2m). Diluted earnings per share on the same basis were 5.5p (2015: 4.9p) and the dividend for the year was raised to 2.4p 92015: 2.1p). Net cash balances at the year end were £4.34m (2015: £4.61m), despite spending £1.66m on acquisition payments and £1.21m on dividends. These are clearly very good results and both of the group’s divisions reported increases in revenue, although in the Digital Retail business operating profit declined due to investment in the business. The Enterprise software business increased its operating profit though thanks to improved efficiencies and this more than offset the decline in the retail business. The order book at the year end was up by over 25% at the year end to £3.02m (2015: £2..35m) and prospects for the current year look positive. The strong balance sheet provides scope for acquisitions going forward too if suitable opportunities arise. With pre-tax profits set to rise to £3.6m in the current financial year for earnings per share of 5.6p the shares are a BUY.