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Eurodis Electron - Attractive valuation again

February 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.

Results for the six months to 30 November reflected the fifth phase of cost cutting across the company.  The pretax loss before goodwill and exceptional items was £2.7m, compared with a profit of £1.2m in the first half last year.  This was based on sales of £168.4m down 16% in a market which declined by over 20%, suggesting Eurodis continues to gain market share and illustrating the operationalgearing working in reverse. During the year, Eurodisrestructured its operations once again, in line with lower levels ofsales. Although operating expenses were reduced further, this onlypartially offset the effect of the decline in sales. Gross profit alsoreduced as a result of declining prices and was affected by someser ...

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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.

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