29 January – interim results
As expected, the group’s interim results were disappointing although this had been well flagged in last month’s trading update. In the six months to 30 November, revenues declined to £10.4m (2017: £12.8m) and after taking a £500,000 hit to profits from a write-off of certain development costs, there was a pre-tax loss of £0.9m (2017: adjusted profit of £0.9m). Net cash at the period end was £2.2m (31 May 2018: £3.8m). Although there are a number of uncertainties affecting parts of the business, the group is reasonably confident about the future and whilst the shares are not without risk, we believe they are a SPECULATIVE BUY.