Highlights:

• Revenues of £5.2m (2010: £5.3m)
• Gross margins 40.5% (2010: 41.1%)
• Profit before tax of £5,000 (2010: £115,000)
• Basic and diluted earnings per share of 0.08p (2010 as restated: 1.81p)
• Net cash inflow from operating activities of £0.4m (2010: £0.9m outflow)
• Net debt of £1.8m (31 December 2010: £2.0m)

Commenting on the current outlook, Tim Wightman, Chairman, said:

"Our order prospects remain encouraging with a number of large UK programmes in both the rail and defence markets having now obtained Government approval. However, the indicated delivery schedules of trains on the prospective large rail projects mean that those would be unlikely to have any material impact on revenues until 2013.

In the shorter term, the increasing global economic uncertainty over recent weeks leads us to be cautious over the timing of customer order placement for our products although we believe those orders will be secured. Despite this we expect year-on-year revenue growth in 2011, although that growth will be lower than previously expected."
 
 
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