19 September 2014 – interim results
The group has released its interim results for the six months to June showing a much improved performance. Revenues for the period rose to £13.7m (2013: £11.3m), whilst an adjusted pre-tax profit of £286k was reported as against an adjusted pre-tax loss of £440k in the same period in 2013. Reported earnings per share were 3p and the interim dividend was increased to 1.20p (2013: 1.15p). A reduction in stock levels helped net debt fall to £3.8m from £5.7m a year earlier. Both the operating divisions of Bicycles and Accessories and Sports, Leisure and Toys have increased revenues and operating profits and the recent acquisition of Pro Rider in August is already making a positive contribution to the group. A more cautious statement on recent trading has led to some profit-taking in the shares this morning and we believe this has created a good buying opportunity. BUY.