21 November 2016 – interim results
The medical diagnostics group has announced its interim results for the six months to 30 September showing revenue up 11% to £6.83m (2015: £6.15m) with adjusted pre-tax profits increasing to £0.56m (2015: £0.52m). Earnings per share were maintained at 0.6p. Revenues have been helped by the weakness in sterling during the period and on a constant currency basis the increase was only 3%. The company ended the period with net cash of £0.3m (2015: £1.0m). Although these were solid figures and prospects for the rest of the financial year are promising, there is some uncertainty regarding the group’s allergy business and its relationship with its licensor. This could have a significant impact on the group and so we reduce our recommendation to HOLD.