12 April 2017 – trading update

A pre-close trading update has been provided for the financial year ended 31 March 2017 and adjusted profit before tax will be ahead of expectations.  Revenue is expected to be slightly ahead of the previous year with a favourable exchange rate more than offsetting the reduction in reported revenues from the enlarged joint venture in China, which is now reported on a profit only basis.  Trading improved towards the end of the year and second half revenue was approximately 7.5% higher than the first half and 20% higher than the corresponding period a year earlier.  In the Energy Division, revenue in the second half was sharply up on the previous six months.  This reflected both strengthening end markets and the impact of new business wins.  The Transportation Division saw new business growth in both the UK and US and second half revenue was approximately 10% higher than the corresponding prior year period.  Final results are due to be released on 7 June and ahead of the announcement the shares are a BUY.