Commenting on the group's interim results, Stephen Allott, chairman of COE Group, says "The turnaround led by the CEO, Andrew Wallace, is starting to deliver solid progress and significant improvements have been shown over the last year on turnover, gross margin and overheads. The balance sheet has been transformed and strengthened by reduction in debt, sale of non-core assets and equity issuance. I am particularly pleased to see a return to profitability based on operational improvements and balance sheet restructuring".

Highlights

- Profit before tax £220,000 (2006: £1.1 million loss)
- Turnover £2.48 million (2006: £1.63 million (52%))
- Gross margin 42.5% (2006: 41.1%)
- Overheads of £1.2 million (2006: £1.8 million (-31%))
- Operating loss reduced to £159,000, (2006: £1.1 million loss (-85%))
- Freehold building sold for £1.425 million resulting in £369,000 profit on disposal
- Net debt £150,000 at 31 December 2006 reduced from £2.0 million at 31 December 2005
- New board in place
- Continuing investments in sales staff and new products.