16 August 2018 – final results
The company has announced its final results for the year to 31 May and these have revealed a sharp drop in revenues to £24.0m (2017: £35.4m) although this was largely expected. The downturn in sales was due to lower demand for antennas and delays in production relating to new defence contracts. As we have said before, revenues at the company tend to be very lumpy and last year benefited from some large orders. As a result, pre-tax profit fell to £1.2m (2017: £2.2m) and earnings per share declined to 0.59p (2017: 1.51p). The group plans to merge its wireless and broadband businesses as the technologies used in these become increasingly similar and this should enable a better use of the group’s resources. Net cash at the year end was £3.6m (2017: £2.6m). Looking forward, the group is gaining increased market recognition for its products which will have significant application in 5G networks and the shares therefore remain a SPECULATIVE BUY.