12 June 2018 – interim results
The specialist engineering group has announced its interim results covering the six month period to 31 March and these have revealed a fall in revenues as well as an increase in pre-tax losses. Revenues dropped to £13.6m (2017: £17.7m) whilst the pre-tax loss increased to £5.0m (2017: loss of £2.6m) . These results had been flagged in the recent profit warning although the shares have dropped a little more and are now at around a five year low. The group undoubtedly has some short term issues to address although most of these seem to be due to timing of orders and so on. The group’s manufacturing divisions are benefiting from the momentum being shown in the defence and oil and gas markets whilst there remains considerable upside momentum in Alternative Energy where a number of strategic options are being explored. On balance we believe that the shares are a BUY FOR RECOVERY.