17 February 2015 – trading update
Revenue for the year ended 31 December 2014 was approximately £31.3m, up over 10% and 6% on a like for like basis. The acquisition of Pro Rider, completed on 1 August 2014, added revenue of £1.4m. Operating profit is expected to be significantly up on the previous year, when the figure was £972k. As previously reported, the finance cost of £516k in respect of the fair value adjustment on derivatives recorded in the year ended 31 December 2013 was fully reversed during the year. In addition, a fair value credit of £142k was recorded for the year ended 31 December 2014 which will reverse in 2015. This means that there will be bumper earnings for 2014 and with revenue in the first six weeks of 2015 ahead of last year there is an upbeat feel about prospects. The strong dollar and pension deficit are negatives to note but ahead of final results, due out in April, the shares now trade on a low multiple of prospective earnings and are undoubtedly a BUY.