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Aero Inventory - Contract with SR Technics

April 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Reflecting three months of increased business from HAECO (which increased its annual  inventory procurement and management contract from $17m to $39m in September), turnover in the six months to31 December lifted by 58% to £7.2m. Operating costs increased by 47% which helped the operating margin rise to 22.8% from 18.9%. Pretax profit more than doubled to £1.54m and earnings rose 81% to 11.5p. Atodds with the strong results, net cash outflow was £5.6m versus £2.3mreflecting the build-up of stocks for the enlarged contract. The period-end balance sheet showed increased stocks of £16.6m, up from £7.2m. After the placing of shares last October which raised £5.5m, debt was £3.4m. During the period, Aero expand ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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