red24 (REDT:AIM) – encouraging results and the valuation suggests it’s worth a look
The provider of security and risk assessment services issued encouraging results with the dividend also lifted. The balance sheet looks in good shape and the business seemingly developing nicely
Group revenue increased by 15.4% to £3.3m and operating profits rose 6.8% to £439k – bear in mind the market cap is only £5.7m! Growth in the volume of business was unfortunately not matched by growth in pre-tax profits largely due to movements in the value of the dollar which has had a negative impact of £40,000 when compared to the same period last year. Without this, profit before tax would have increased by a much more impressive 18%. Somewhat surprisingly they propose using some of their excess cash to acquire the freehold (The Crisis Response and Management Centre in…