18 September 2018 – interim results
The fluid power products and services group has announced excellent results for the six month period to 30 June. with revenues rising by 65% to £56.4m (2017: £34.2m) and adjusted pre-tax profits rising by 24% to £5.2m (2017: £4.2m). Reported earnings per share rose to 5.8p (2017: 5.2p) and an interim dividend of 2.03p (2017: 1.93p) was declared. Net debt at the end of the period was £18.0m (2017: £8.4m). These results have benefited from acquisitions made over the last year although these have also led to an increase in group borrowing. The company has also made a number of management changes as it looks to build on the recent expansion and lays the foundation for future growth. Although the company is confident of its medium term prospects, in the short term it has noted a slow down in the rate of growth whilst a delay on a particular contract means that operating profits for the year will be slightly below expectations. The fall in the share price of around 30% on the back of this news looks overdone and has presented what we believe is a useful buying opportunity. BUY.