Companies: HTH ��

Half-time figures from reorganised and refinanced Hartest, guided by chief executive Geoff Spink, revealed narrowed pre-tax losses of �4,000 (�672,000) on a 16.6 per cent sales rise to �10.7m. Gross margins held up and potential investors might focus on the underlying numbers.

Underlying operating profits surged 130 per cent north to �428,000. This metric adds back goodwill, share option costs and non-recurring costs including the liability for the lease of a former subsidiary that went bust and the interim financial management costs incurred following the sad death of the previous FD.

Building on the return to dividends at the full year, a move back to interim income was also announced, with a small, yet very significant, 0.0067p dividend displaying confidence in the group’s improved prospects. In his statement, non-executive chairman David Leeming lauded ‘encouraging’ organic growth in both the instrumentation and medical divisions.

Within instrumentation, sales of Henson ophthalmic products were buoyant, the Carnation Designs business put in a powerful performance and the Indian operation kicked off the year with significant sales growth. Within medical, there was a notable rise in sales of x-ray and dosimetry equipment. Spink now plans to invest in the development of new instrumentation products, and insists that ‘new radiopharmaceutical distribution business’ within the medical division will deliver further growth.

For the year to March, bullish analysts suggest improved adjusted pre-tax profits of �900,000 (�649,000) from a top-line �21m (�19.6m), giving 0.074p of earnings. The prospective p/e of only 9.5 is understandable given the group’s chequered history. However, speculators willing to bear a degree of risk could win out in the long term.