Instrumentation supplier Hartest Holdings has reported a return to profit and says that it is in bid discussions with Delta Controls.
Hartest is also restoring the dividend at 0.67p a share.
At 50.5p a share, down 2.5p on the day, Hartest is valued at £4.35m. That is well below Delta’s indicative bid of 61p a share. Privately-owned Delta has been told by the Takeover Panel that it has to make a firm bid before the end of 2009.
The net asset value is £8m, or £4m excluding intangibles.
Hartest swung from a loss of £290,000 to a profit of £5,000 in the six months to September 2009. Stripping out non-recurring costs (relating to restructuring and bid costs), profits improved from £11,000 to £228,000. This is better than expected and the improvement continues. The second half is normally stronger.
Revenues declined from £10.1m to £9.42m. Net debt was £596,000 at the end of September 2009.
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