30/03/2001
The human resource outfit demonstrated a recovery in its core recruitment companies and moved into railway training in the year to 31 December 2000. Total sales rose by 25% to £8.3m, with £795,000 of sales added via the November acquisition of Catalis, its foray into the railway training industry. Pre-tax profits recovered strongly in the continuing businesses, rising from £722,000 to £906,000. However, with Catalis included in the figures, profits at the pre-tax line only reached £847,000 because the acquisition contributed a £59,000 loss. This was due to a change of year end to 31 December at Catalis post-acquisition, to coincide with the other ATA companies. Furthermore, December is largely an 'inactive' month at Catalis but the loss should be offset by the remaining eleven months. Reorganisation and development of Catalis will 'take time to bear fruit' but the board is optimistic that the acquisition will take advantage of the tightening safety regulations and additional government funding in the rail industry. RTAS, the smaller auditing business of the purchase, is 'already performing well'.
| Market cap: | £5.9m |
| PE Forecast: | 5.4 |
| Share price: | 73.5p |
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