20 September 2018 – interim results
Results for the six months ended 30 June 2018 have been released. Revenue increased by 9.5% to US$22.2m (2017: US$20.3m) but despite a gross margin of 58.0% (2017: 51.5%) the company recorded an operating loss of US$1.1m (2017: US$0.7m). Net cash as at the period end was US$2.7m (2017: US$4.9m). As in previous years, sales are expected to be weighted towards the second half of the year. However, the timing of orders is unpredictable. The company continues to believe that it will at least break even in the current year then deliver an increase in revenues and acceptable levels of profitability from 2019. With a market capitalisation of just £8m this leaves scope for significant capital growth and we keep our SPECULATIVE BUY rating.