The Board is pleased to report that underlying profits are substantially ahead of last year. The Group has entered 2017 in a strong, confident position, supported by an improved net cash balance and improved forward order book.
Further to our announcement on 31st October 2016, the 2016 results will include exceptional charges and provisions in relation to the internal fraud at our DGR subsidiary. These are estimated at £2.2m, including a provision for professional costs of £0.4m directly associated with our efforts to recover the misappropriated funds. Profits for the year are expected to be in line with market expectations after reflecting the full impact of the accounting adjustment for the fraud in the period, other than the provision for related professional costs referred to above. Legal proceedings to recover the misappropriated funds are ongoing.
The Group's year end net cash position improved for the fourth successive year to £9.2m (31st December 2015: £6.6m), an increase of 39% on the previous year.
Supporting our growth, our banking facilities with NatWest were renewed successfully as planned. The Group now has access to an increased three year £10m (previously £5m) revolving credit facility and a £5m (previously £8m) overdraft facility.
Our forward order book as at 31st December 2016 has strengthened to £330m (31st December 2015: £300m).