20 March 2018 – final results
Results for the year to 31 December have been released. Total revenue increased by 11% to £84.7m (2016: £76.0m). Adjusted profit before taxation and share based payment charges fell by 19% to £5.8m (2016: £7.2m), translating into adjusted basic earnings per share of 4.23p (2016: 4.42p). Net operating cash flows decreased by 21% to £10.7m (2016: £13.5m). Net debt at the period end was in line with the previous year at £10.8m. No dividend was proposed given ongoing discussions with HMRC. Following the recent disposal of AIS net debt as at 19 March was £8.9m. This disposal brought in an initial consideration of £3.0m and a further £0.8m is due on agreement of completion accounts. Further amounts are expected for delivery of working capital over normalised levels. Although risky there is scope for a strong rebound when there is more certainty over the issue with HMRC and we keep our SPECULATIVE BUY rating.