19 September 2017 – interim results

The company has announced interim results for the first half of 2017.  Revenue increased by 14.4% to £42.1m (2016: £36.8m) but adjusted profit before tax decreased by 7.2% to £2.9m (2016: £3.1m).  Adjusted basic earnings per share decreased by 7.4% to 2.24p (2016: 2.42p).  Net debt increased to £12.5m from £10.8m as at 31 December 2016.  The results reflect a mixed period with improved performance from Radioactive Waste Services and North Sea Services offset by losses in Industry & Infrastructure.  The recent HMRC assessment continues to represent a cloud over the company and although full year financial results are still expected to be broadly in line with market expectation the uncertainty this issue has created is unsettling.  On balance we keep the shares as a HOLD.