3 August 2017 – interim results
The interim results covering the six months to 30 June came in as expected with revenues up by some 9% at £1.0bn (2016: £0.92bn) mainly as a result of favourable currency movements. Underlying pre-tax profits fell slightly to £69.5m (2016: £75.8m) and earnings per share on the same basis were 2.5p (3.8p). As previously stated there is no dividend. The rights issue earlier this year has helped to put the group on a stronger financial footing although the group remains in the early stages of its turnaround. Order intake in the first half was encouraging though and the group has a number of high quality businesses and these should stand the group in good stead going forward. As investors come to appreciate the underlying strengths of the group we would expect the share price recovery to continue. BUY FOR RECOVERY.