The trading picture has not deteriorated any further since warning 2 weeks ago and the business is actively responding in terms of cost savings, efficiency initiatives and also replacing the sales director (which the CEO takes charge of on an interim basis). We don’t foresee any further forecast changes in the near term and believe the recent cuts are adequate enough. With the share price having met our target price, and given the announcement of a £2.5m share buyback which will absorb any residual selling pressure and be slightly earnings enhancing, we believe further downside risk to the shares is limited in the near term. We therefore move back to HOLD from sell.