Christie Group (LON:CTG) (CTG, 52.5p, £13.26m), the leading provider of Professional Business Services and Stock & Inventory Systems & Services to the leisure, retail and care market reports interims to 30 June 2010 are in line with full year expectations. Following the cost reduction programme, with annualised cost savings, the group returned back to profitability with PBT of £0.28m (H109: -£2.7m) on flat revenues of £25.2m. The 11% revenue growth in the Professional Business Services division was offset by the 10% decline in the Stock and Inventory Systems and Services division. The Board are encouraged by the current pipeline. Net debt stood at £0.45m (H109: net cash £0.84m). An interim DPS has not been declared, but the group are committed to reviewing a full year DPS. We expect the remainder of the year to remain challenging. With current market expectations of PBT of £0.2m and EPS of 0.55p, the group expect to generate a loss in H2. The stock is highly rated on an earnings basis. However, the full benefits of the restructuring encourage us to reiterate our HOLD recommendation.
Clearstream Technologies Group (LON:CTN) (CTN, 23.25p, £10.71m) has received FDA approval for its ReeFlex catheter, which has opened up the potential to supply the largest market in the world for peripheral catheters. ClearStream will now engage in an evaluation period with a potential partner for distribution of the ReeFlex and ReeKross catheters in the USA. We reiterate our HOLD recommendation.
DM (LON:DMP) Group (DMP, 6.75p, £11.23m) Interims to June 2010 saw revenues of £13.45m (£11.60m) with gross profits of £7.06m (£6.52m), gross margins of 52.4% (56.2%) and lower admin charges of £3.99m (£4.04m) leaving op profits up at £3.06m (£2.48m) with lower finance charges boosting the result further with PBT of £2.98m (£2.28m) and EPS at 1.32p (1.14p). Net debt ended the period at £2.54m (£4.43m at the Dec year end) despite a £0.77m adverse movement in working capital. These are good results with the overhang of the OFT investigation now not expected to deliver its conclusions to 2011. Never the less the rating is attractive and we rate the group a BUY with a modest 10p price target.
Forbidden Technologies (LON:FBT)…
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