I still feel that the current lowly rating is unjustified for a number of reasons. Firstly, analyst David Buxton at house broker finnCap notes that “management are confident of achieving expectations for the fiscal year to end 28 March 2015”. Mr Buxton is pencilling in full-year revenues of £44.5m, pre-tax profits of £2.1m and EPS of 2.1p, implying a modest 5 per cent growth in net earnings. True, there is a second half bias to those numbers as 600 Group reported flat first half revenues of £21m and pre-tax profits around 10 per cent higher at £670,000.
A strong currency tailwind