7 April 2016 – final results

In the year to 31 December the group saw revenues decline to £8.7m (2014: £9.4m), whilst pre-tax profits fell to £0.1m (2014: £0.5m).  Adjusted earnings per share declined to 0.30p (2014: 0.53p) and no dividend was declared.  The group ended the year with net cash of £0.24m (2014: £0.73m) although the figure for 2014 included a significant pre-payment from one customer.  The group has taken the opportunity to write down its goodwill by £6m whilst exceptional charges of £0.64m were also incurred in restructuring and reorganising the business.  Senior management changes have been made and the company is now more forward looking with historic issues behind it.  The company has had a steady start to the new year although the trading environment remains challenging.  Nevertheless, we believe that long term shareholders should be rewarded and that the recent fall in the share price has presented a useful buying opportunity.  LONG TERM BUY.