Results for 2011 provided few surprises given the trading update released last month. A large increase in pre-tax profits was mainly due to one off gains relating to the company’s pension fund and this helped offset weaker trading. A resumption of growth is expected this year though and the share rating does not look onerous, especially given the strong balance sheet which can boast net cash of almost £3m. There is considerable scope for some upside in the share price.

Today’s announcement of its annual results for the year to 30 September have shown that the group continues to make good progress despite the challenging market conditions.  Both profits and earnings per share have risen, whilst the strong operating cash flow has allowed debt to fall once again so that gearing is now a comfortable 36%.  The group has started the new financial year with a strong order book and the introduction of new products should attract new customers as well as generate more business from existing ones.  We believe that the shares look excellent value and have set a share price target of 62p – potential upside of 138%

Yesterday’s trading statement has revealed that althougb overall trading at the group has been strong, the problems in the eurozone have reduced demand in the region, with the result that full year profits for the year to 31 January 2012 will be lower than previously expected.  We have cut our forecast to £5.1m before exceptional items, a similar level to last year.  However, we do not believe that the share price reflects the progress made at the group over the last two years, nor the potential for recovery next year.  We have a share price target on the shares of 55p.

Today’s interim results have demonstrated that the group continues to make excellent progress with profits, earnings per share and the dividend all increasing in the first half.  The streamlining of the UK operations continues whilst the overseas activities provide scope for growth.  Despite this progress the company’s shares have dropped back significantly leaving them on a prospective p/e ratio of just 6.0x.  The shares are due a serious re-rating and we maintain our share price target of 66p.

Interim results from global engineering group Weir have once again turned out to be excellent, with the group reaping the benefits of the strong performances in the oil & gas and mining sectors.

The technology group DATONG, which supplies high performance covert intelligence gathering solutions and equipment, has announced its interim results today, revealing a 43% increase in pre-tax profits before exceptional items.

After a five year period of flat sales and fluctuating profits, computer products group Concurrent Technologies looks set to enter a period of sustained growth.  Last Friday’s AGM statement was encouraging as trading conditions in the important defence sector remain strong

The group’s latest results have demonstrated that it continues to make solid underlying progress despite tough trading conditions.  The current year will see the benefit of  recent acquisitions and both pre-tax profits and earnings per share are forecast to increase.  Despite this, the p/e ratio remains very modest providing scope for a re-rating.