15 October 2019 – trading update
The company has released a trading update ahead of interim results, which are due out on 25 November. Although there was a relatively strong second quarter, slower trading in Q1 will mean that reported results for the first half of the financial year will be down on the corresponding period a year earlier. Operating profit, stated before amortisation and other adjustments, is expected to be in the range of £1.3m to £1.4m, down from £1.7m last year. When interim results for the six months to 30 September 2018 were reported the company stated that these results were considered exceptional. Given the share price this performance is still solid and makes the tender offer at 72p look too low. We believe that the fundamental value of the shares is significantly higher than the current level and keep our BUY rating.