29 September 2017 – interim results
The group has announced its results for the six months to 30 June and these have revealed a 3.1% increase in revenues to £17.65m (2016: £17.12m) whilst pre-tax profit before exceptional items rose to £634k (2016: £182k). Earnings per share on the same basis rose to 11.9p (2016: 2.5p) and the interim dividend was increased to 1.35p (2016: 1.30p). Net debt at the end of the period was £4.29m (2016: £5.82m). These were very solid results with a strong performance in the sports, leisure and toys division which saw an increase in both revenues and operating profit whilst the bicycles and mobility business also increased operating profit despite a reduction in revenues. The reduction in revenues in the latter was expected following the restructuring of the business last year. The second half has started slowly with disappointing sales in July and August as many retailers have reported that poor weather affected sales. Nevertheless, the company will benefit from the introduction of new products and with the shares standing on a very low rating we maintain our recommendation of BUY.