17 October 2014 – trading update

The company has disappointed the market with its Q3 trading update as despite the fact that the company continues to attract new customers. an increase in the marketing spend means that full year results will be lower than expectations.  Nevertheless, cash balances at 30 September were £13.4m which equates to 4.5p per share.  One of the directors clearly thinks that the shares are undervalued as he bought 250,000 at 7.14p on 17 October.  We agree that the shares are too cheap.  BUY