8 September 2015 – interim results

In the six months to 30 June, the group has made further progress with revenues increasing by 27% to £25.1m and adjusted pre-tax profits rising by 54% to £1.4m.  Earnings per share on the same basis were 61% higher at 4.2p and the interim dividend was 29% higher at 0.9p.  The group continued to trade strongly in the first half with significant progress being made in the strategic objective to move from a traditional electronic manufacturing services business to an integrated technology led organisation.  Revenues grew strongly during the period with a greater proportion being of higher value and higher margin products so that profits grew at a faster rate.  We believe that the second half will be stronger than the first following the pattern of previous years and benefiting from acquisitions.  Pre-tax profits for the full year should therefore come out at around £4.0m for earnings per share of 8.9p. Although the shares do not seem cheap on those figures, further growth in 2016 is expected to result in profits of £6m for earnings per share of over 12p.  The shares therefore remain ATTRACTIVE.