The company has a number of diverse business activities ranging from being a major supplier of naval equipment to the UK Royal Navy, a designer and manufacturer of petrol stations forecourt superstructures, and manufacturer of high-quality open die hammer forgings for use within many industrial applications.
The reason I recommended buying the shares in the first place was primarily down to the prospect of a recovery in earnings from MSI's defence activities and the upside from an earnings accretive acquisition in the summer which boosted its petrol stations forecourt business. On both counts the company has delivered, with the defence business reporting a marked narrowing of trading losses to £163,000 in the six months to 31 October 2015, down from a loss of £1.1m at the same stage last year.