Listed on AIM July 2005 raising 2 million for aquisitions, debt payments and general working capital. Waterline Ltd is a one-stop kitchen shop for retailers and builders.

Long history as a profitable business since 1985 and charts suggest we've hit the bottom.

www.waterline.co.uk
www.danielstewart.co.uk for the prospectus

Major Shareholders

Michael Lawrence 56.6%
Frank Tiller 24.3%
Rathbone Investments 9.1%
New Star Asset 3.3%

Leaves less than 1 million shares in free float. Tightly held.

Sales growth is maturing and margins are holding steady at around 23%. Company has enough spare cash to start a dividend policy which i expect to be announced with their maiden results.

BUT perhaps most importantly there were some very large director buys on March 20.

Quite a grim set of results :

http://www.investegate.co.uk/Article.aspx?id=200707050924557090Z

RNS Number:7090Z
Waterline Group plc
05 July 2007




Waterline Group plc

("Waterline" or "the Group")

Results to 31 March 2007

Financial and corporate highlights for the year ended 31 March 2007

_______________________________________________________________


The Board of Waterline Group Plc ("Waterline" or the "Group") one of the larger
suppliers to the fitted kitchen industry in the UK, announces its results for
the twelve month period to 31 March 2007, where it reports turnover, profit
before tax, basic EPS and net assets per share.



Financial Highlights


* Turnover up to #83.7m
* Profit before tax #1.7m (excluding one off costs #0.8m)
* Basic EPS down 56 per cent to 2.54p
* Net assets per share down by 0.5 per cent to 56.0p
* Net debt reduced from #4.2m to #4.1m
* No proposed dividend payment for the year
* Current trading remains challenging



Corporate Highlights


*Successful integration of Coolectric now completed
*Acquisition of Brian Donaldson Distribution on 1 October 2007
*Substantial investment in logistics operation
*Completion of the re-structuring of the Operating Board
*"Blue Book 14" the industry reference book to be launched in July 2007