15 March 2016 – final results
The group has announced its final results for 2015 revealing a 29% increase in revenues to £53.9m (2014: £41.7m) with sales of technology products rising by over 92% to £27m to represent around 50% of group sales. The latter business is seen as having significant growth potential and will be the main focus of the group going forward. The strong growth in this business has helped adjusted pre-tax profits increase by over 48% to £4.0m (2014: £2.7m). Adjusted earnings per share rose by 27% to 9.9p (2014: 7.8p) and the dividend for the year was increased by almost 29% to 2.7p (2014: 2.1p). Net debt at the year end had fallen slightly to £4.7m (2014: £4.9m). The group performed well in 2015 helped by the purchase of Stontronics last August and this business is performing better than expected. Since the year end the group has won new contracts including one announced today for £5m for telematics units for Trak Global Solutions Limited. Increased investment by the company in 2016 means that profit forecasts have been reduced slightly to £5.5m for earnings per share of 11p. On a prospective p/e ratio of just 11.2x the shares look good value. BUY.