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29 August 2012 | Education | DRS Data & Research Services plc

DRS Data plc reports lower education revenues

DRS Data & Research Services issued its interim results for the period ending June 30th, 2012. The Company specialises in data captures services and the manufacture, sale and support of optical and image scanning equipment used in the education, census and election markets. The Company delivers examinations and assessment equipment and services for the education market.

​Education revenues fell by 10% in the first half of 2012 to £5.1m (H1 2011: £5.7 million). Non education revenues were boosted by involvement in the London Mayor and Assembly elections which boosted total revenues to £9.0m (H1 2011: £6.4m). Although software development and testing problems greatly limited the profitability of the election contract, interim losses were trimmed to £153k (H1 2011: loss £236k). The Company’s education business is increasingly focussed on e-Marker which the Company claims it is at the forefront of the electronic assessment market. AQA continues to be its major customer and uses e-Marker for marking the majority of its examinations. The supply of the more traditional examination and assessment products such as the design and printing of educational forms and the sale of scanning equipment remain important, especially in Africa. The Company’s sales are weighted to H2.  

Comment:

DRS trades on a modest forward P/E multiple of 6.3x. Net cash stands at £1.5m, representing 25% of the current market capitalisation and is likely to be higher at the end of the financial year. The valuation looks attractive given the scope to leverage its e-Marker service and election software in the UK and overseas.

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