A move to the new financial reporting standard has taken its toll on the interim results at Peek Plc. The figures filed shows profits at the traffic and field data systems group down 26.4% an unduly harsh correct measurement of the underlying business’s performance says Peek. So alongside the results, it has published reconciled figures showing comparisons as they would have been calculated historically. Under this regime, pre-tax profits are off just 6.7% down to UKP2.63m from UKP2.81m. The company’s turnover for the period rose healthily to UKP44.26m, up 13.3%. Of this UKP5.8m resulted from the acquisitions of Signal Control Company and Signal maintenance Inc in March (CI No 2,126). These purchases, together with a 41% in Chinese traffic control firm Sichuan Modern Control Systems Engineering Co Ltd (CI No 2,152) has hit the balance sheet and now the company has net borrowings of UKP1.89m compared with UKP11.36m in the bank this time last year. However the company seems relatively happy with the situation and points out that borrowings are less than 10% of the UKP24.48m shareholders funds. Nevertheless chairman Ken Maud’s statement says that assuming no further acquisitions, profitability and balance sheet management should ensure a positive operational cash flow for the year, resulting in a net cash position at the year end. Acquisitions may not be likely, but Maud says that the company is exploring a number of strategic partnerships in traffic and field data – with road pricing looming in the UK and elsewhere, Peek has high hopes. The company re-iterated that the second half of the year should show improved trading.
