4 March 2019 – trading update

The company has revealed that revenue growth was nearly 6% in the second half of 2018 following a poor start to the year.  For the year as a whole revenue was £32.5m and profit before tax is expected to be only marginally behind the prior year.  There has been a ‘very strong’ start to the current year, which means that earnings could exceed those achieved in 2017, when diluted earnings per share were 34.8p.  This puts the shares on a multiple of around 4x prospective earnings, which appears extremely low.  We rate the shares as a BUY.