14 June 2017 – interim results and placing
In the six months ended 31 March 2017 revenue was £19.0m (2016: £21.4m), which is in line with expectations. There was an adjusted operating profit of £0.2m (2016: loss of £0.1m) and reduced loss before tax on continuing operations of £0.62m (2016: loss of £0.75m). The loss per share was 0.39p versus a loss of 0.38p per share a year earlier.
The company has also announced a proposed placing to raise up to approximately £9.5m at a price of 10p per share. A £3.75m debt conversion at the same price has also been announced. Should the placing and debt conversion be completed the level of risk will be reduced significantly and with approximately 200 million shares already in issue the level of dilution is not, in our opinion, excessive. The shares remain a SPECULATIVE BUY.