4 October 2017 – trading update
Shares in one of our Shares of the Year have fallen back on the news that trading in the second half of the financial year to 30 September has been disappointing. This is due to delays on the start of a number of nuclear and infrastructure contracts, most significantly the contract at Hinckley Point C which was due to commence in the final quarter of the year. This is now expected to start this month and will complete during the financial year which has just commenced. However, the effect of these contract delays will mean that results for the year to 30 September 2017 will be materially below expectations. Nevertheless, the issues appear to be more about timing than anything else and the medium term prospects of the company are encouraging. Pre-tax profits for the year to 30 September 2018 are forecast to be around £3.4m for earnings per share of 0.7p – with only a modest amount of debt we believe the fall in the share price has created a BUYING opportunity.