28 March 2019 – Trading update

The company has released a positive trading update covering the year to 31 March stating that trading across the group is ahead of market expectations with the three acquisitions made during the year all performing to plan.  Revenues for the year are likely to exceed $365m (2018: $322m) whilst cash at 22 March was $18.4m, compared with $24.9m at the end of September.  However, during the period the group invested $16.5m into the acquisition of GTK and so net free cash flow for the period was $10.0m.  Assuming that trading continues in the same way, the company intends to re-instate the dividend in the next financial year and we re-iterate our recommendation of BUY.