Shares in OpSec Security fell 10 per cent after the counterfeit security group plunged into a full-year reported loss. On an underlying basis, after adding back exceptional costs and amortisation charges, operating profits still declined £1.5m to £2.3m.
Part of the problem has been the lumpy nature of OpSec's revenue stream, notably from banknote and high security documents, where turnover fell 30 per cent to £7m. This was because of the cyclical order patterns from an Asian currency customer, although delivery this year will have a significant positive impact on sales. Sales in ID Solutions were also significantly down, falling 22 per cent at £4.1m, reflecting the loss of government contracts and this unit is to be merged with the banknote division. On a positive note, Brand Protection revenues rose 8 per cent to a record £27.2m, reflecting strong sales to the Chinese tobacco industry and US sports leagues.
OpSec made two acquisitions during the financial year, picking up software development specialist Advantics in May 2011 and brand protection label specialist Delta in a £12.5m deal last month part funded by a £7.8m placing at 45p a share.
There are currently no analyst forecasts for the company.
| OPSEC SECURITY (OSG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 38p | MARKET VALUE: | £38m | |
| TOUCH: | 36-40p | 12-MONTH HIGH: | 57p | LOW: 36p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 36p* | NET DEBT: | 24% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 33.0 | 2.64 | 9.2 | nil |
| 2009 | 39.3 | -0.78 | -3.3 | nil |
| 2010 | 35.0 | -0.26 | -0.2 | nil |
| 2011 | 40.4 | 1.21 | 2.7 | nil |
| 2012 | 38.3 | -1.73 | -3.4 | nil |
| % change | -5 | - | - | - |
*Includes intangible assets of £37.8m, or 47p a share | ||||
