8 December 2015 – interim results/disposal
In the six months to 30 September, revenue at the group rose by 7.7% to £9.84m (2014: £9.14m) with pre-tax profits before exceptional items increasing to £1.75m (2014: £1.52m). Earnings per share on the same basis were 4.77p (2015: 4.01p) and the interim dividend was maintained at 1.7p. At the end of the period the group had net debt of £2.32m (2014: 2.86m). Although the group’s leisure division, which manages amusement machines and supplies equipment to pubs to measure volumes of drinks that are dispensed, is suffering from pub closures, the introduction of more advanced products is offsetting this to a large degree. The group has large recurring revenue streams and during the period it signed several 5 year contract renewals and extensions with companies such as Punch Taverns, Trust Inns and Heineken’s Star Pubs and Bars.
The group has agreed to dispose of Vianet Fuel Solutions, the fuel monitoring business, for cash consideration of £3.5m. The sale will allow the group to focus on its core leisure division and this is seen as a possible development at the group. We retain our recommendation of BUY.