The testing and measurement equipment maker reported underlying profit before tax of £8.7mln for the six-month period to 29 February, up 36% on the same period a year ago.
Manufacturing facilities continued to operate to enable it to deliver existing and new orders, the group said, with inventory “sufficient” to address the short to medium term requirements.
As well as withholding the interim dividend payment, management has put in place mitigating actions to protect against the effects of the Covid-19 pandemic, controlling discretionary spending and conserving cash but still continuing to invest in new product development and business infrastructure.
Cash at the end of the period was £35.1mln.
Broker Liberum cut its full year PBT forecast 20%, predicting the capex reductions will lead to net cash rising to £37.9mln, “leaving the business well positioned to weather the storm and to continue to invest in product development”.
Analysts cut their target price to 2,100p from 2,700p, maintaining a ‘buy’ rating.