10 April 2019 – final results
Solid final results for 2018 have been released, which in the context of a very weak first half were impressive. Revenue reduced by just under 12% from £36.8m in the year ended 31 December 2017 to £32.5m in the year ended 31 December 2018. Despite the reduction in turnover, operating profit before finance costs and taxation was £2.25m (2017: £2.40m), a 6% reduction. Basic earnings per share were 32.3p for the year ended 31 December 2018 (2017: 35.0p) and diluted earnings per share were 32.1p versus 34.8p in the prior year. Cash generation was strong with cash and cash equivalents increasing to £4.85m at 31 December 2018 compared to £3.86m at 31 December 2017. Net debt of £1.02m the end of 2017 improved to a net cash position of £107k at the end of 2018. Net assets increased during the year from £11.07m to £12.41m. A final dividend of 2.89p per share (2017: 2.75p) gives a total dividend of 4.31p for the year (2017: 4.10p). The new year is said to have started very strongly so the current share price still looks too low. BUY.