1 November 2017 -trading update
The LED lighting and electr0-mechanical system manufacturer and distributor has issued a trading update covering the year to 30 September. This has revealed that output during the second half was at record levels and, given the current strength of the order book, this level of activity seems likely to be sustained in the financial year which has just started. In addition, margins, which were depressed in the first half due to an unfavourable product mix, have improved in the second half helped by higher volumes and manufacturing efficiencies. With the increase in volumes that have been seen, further investment in plant and equipment is planned. The UK market has been buoyant and looks set to remain so and this is supported by export opportunities in Europe, Asia and Australia. The group remains very confident of further progress and on a modest p/e ratio for the current year of under 11x, we believe the stock is cheap. BUY.