25 July 2017 – trading update
The company has noted that profit performance for the first half, the six months ended 30 June, was broadly in line with the same period a year earlier. A cost reduction programme has recently commenced and this should generate annual savings of around £2m from August. The expected one-off cost of around £0.7m will be shown as an exceptional item in the full year results. Overall full year profit growth is anticipated although the outcome is likely to be at the lower end of market expectations. The shares have taken a hit on this news but we feel that the fall is overdone and maintain our STRONG BUY rating.