29 September 2016 – trading update
The group has issued a trading statement for the three months to 31 August and these have revealed a significant increase in revenue to £11.7m(2015: £2.2m) whilst an operating profit of £1.0m was recorded (2015: operating loss of £2.0m). The net cash balance at the end of the quarter was £0.9m compared with net debt of £0.4m at the end of May. This strong performance has been due to significant sales of antennas to the group’s lead customer following large orders received earlier on. However, it is important to recognise that the increase in revenue and profitability relates to one product and one customer and although the group hopes to expand this, and has recruited additional sales executives to help in this regard, there is no guarantee that this programme will be successful. The shares therefore remain a SPECULATIVE BUY.