9 November 2018 – interim results
In the six months to 30 September, group revenue rose by 13% to $182.4m (2017: $161.4m) although adjusted pre-tax profits increased by 98% to $9.0m (2017: $4.5m) due to an improvement in margins and the benefit of recent acquisitions. MC Electronics and Silcotec Europe, which were acquired during the period, have performed well and have helped to expand the group’s customer base and manufacturing footprint in complex cable assemblies. Underlying diluted earnings per share rose 35% to 5.8c (2017: 4.3c) and no interim dividend has been declared as usual. The group ended the period with net cash balances of $24.9m (2017: 5.8m) following the equity raise in June at 75p which raised $46.7m. Of this $11.3m was spent on the acquisition of Silcotec with the rest being used to fund investment and provide additional working capital. It also provides a warchest for future acquisitions. A confident statement from the chairman bodes well and we continue to rate the shares as a BUY.