Investor's Champion

The specialist IT Recruitment Group is another of our bargain shares for 2012. We acknowledge the disappointment of a poorly timed acquisition that ultimately resulted in a significant impairment impacting the results for the year ending Dec 2011, however, while clearly of importance this looks manageable. In the meantime the Group’s shares trade at a lowly multiple and yield over 5%.

Shares in the software and IT services business soared over 20% this week on news of the sale of its high-street retail business. The sale will enable the Group to repay its bank debt and leave a positive cash balance of approximately £4m. Some of the Non-Execs were subsequently eager buyers of the shares

The Group’s Chesterfield BioGas subsidiary secures a major contract to supply and install upgrading equipment for the UK’s latest project to use gas from renewable waste resources and inject it directly into the national gas grid.

One of the more complex business models to understand but huge upside potential, if the public sector acts as it should!
This independent note was commissioned by an investor.

The AIM listed, designer and manufacturer of speciality engineering solutions for high pressure systems announced its full year results for the year ending 1st October 2011. Having only recently (21st October 2011) updated the market there was little new in the numbers, however, management comment certainly comes across as more positive.

We remain of the view that recent updates from the subsea oil equipment and services space suggest huge promise for PRES into 2012 and beyond, driven by a recovery in its core large cylinder business and further expansion of the Engineered Product Division.

Back in the heady IPO days of 2007 we wrote a commentary on the IPO of Superglass, entitled:

“Loaded with huge levels of debt, the private equity boys are dumping this one on the market for us to enjoy!”

We commented how institutions appeared to be lapping up these private equity dumps on the market, high debt levels notwithstanding, and questioned when they might come to their senses.
With the latest rescue fund raise our initial fears have been fully realised, however, there might now be big upside for the brave .

Last week’s trading announcement was somewhat ‘mixed’ but recent updates from the giants of the offshore drilling space suggest huge promise for PRES into 2012 and beyond.
The shares currently sit at all time lows yet this is now a much larger and better balanced business than first arrived on AIM. Another great opportunity to pick up a bargain?

New focus, new management, compelling technology, trading at a fraction of tangible NAV and cash and Exec Chairman an eager buyer of the shares – a bargain waiting to be snapped up?
We saw it all in 2008 and 2009 when markets distorted the true value of many micro caps and there were 10 baggers galore. It’s disappointed up to now and remains high risk, but ZEN has its attractions

In the latest stock market sell off another superb set of full year results from James Halstead, the AIM quoted manufacturer of commercial, contract and consumer flooring, will have gone unnoticed by many.

It’s all looking fairly dire but Board costs have been ludicrously high for a business of this size

With its retail fashion offering primarily directed to the younger buyer we thought it was more appropriate for a more youthful analysis of the Group’s attractions from our 18 year old commentator!

The software and IT services business has announced the successful conclusion of discussions regarding the refinancing of its term debt and working capital facilities with the new facility expected to generate annual savings of approx £300,000 per annum.

Although the share price has risen significantly over the past 18 months, last weeks’ trading update from the designer and manufacturer of wheels and undercarriage components for off-road vehicles surely suggests there could be a lot more to go for. Titan Europe is a significant business supplying into big growth markets and with debt seemingly under control and trading margins improving it surely deserves a much better rating.

Yesterday’s move by the International Energy Agency resulted in a big fall in the share prices of the large providers of equipment and services to the energy sector - the sell off could represent an excellent buying opportunity!

The AIM listed designer and manufacturer of speciality engineering solutions for high pressure systems issued interim results for the 26 weeks to 2 April 2011 which were much as anticipated following the trading update on 21st April. Encouragingly the oil and gas market is seeing a material increase in new build activity for deep water rigs, a core market for the Group.

The recycling products and services group had an eventful year, which included a well timed move into manufacturing. The full year results to 31st December 2010 presented an improved trading performance in what was a tough trading environment.

The environmental products group issued an encouraging trading update for the year ending 31st December 2010 and confirmed that results for the year would be in line with market expectations.

The AIM listed, designer and manufacturer of speciality engineering solutions for high pressure systems issued full year results broadly in line with expectations with encouraging signs of orders starting to come through in its core market. In the meantime recent acquisitions are performing well.

The software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland announced encouraging Preliminary Results for the year ended 30th September 2010 with improving cash generation, a reduction in net debt and growing order book.

Agriterra yesterday announced that it has raised US$7m by way of a placing to fund expansion.

The software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, issued a positive trading update today giving the share price a deserved boost. The strong trading momentum, lowly valuation, and reduced net debt all bodes well.

The AIM quoted asset protection, cash security, crime deterrent and tracking businesses issued somewhat disappointing interim results, although it remains early days in delivery of their grand plan and the group’s brilliant vehicle tracking system appears to have huge potential.

Focussing on agriculture and associated civil engineering projects in southern Africa, AIM listed Agriterra has issued a highly encouraging operations update, detailing progress at their major developments, mainly in Mozambique.The share price has suffered in recent months following management changes at the Group’s Compagri operations but today’s update gave the shares a deserved boost.

The Group’s Chesterfield BioGas subsidiary received positive coverage earlier this week after successfully completing its first biogas upgrading project involving the first injection of organically produced gas directly into the National Gas Grid. PRES remains cash rich and, even after the recent mini bounce in the share price, remains modestly valued. With plenty of growth on the horizon this remains a compelling story. Download our latest commentary here… 

The UK’s largest dedicated provider of accident repair services came out with really excellent interim numbers supported by a material improvement in the gross margin and continuing excellent cash generation. As we have said before, this looks an interesting one to follow at the current modest valuation!

There were some good interim numbers for the six months ended 30th June 2010 from the AIM quoted producer of Indonesian palm oil and Australian beef cattle. As we have said before, this is a tough one to value but remains an interesting position for any portfolio!

Following a transformational first 6 months, which included the acquisition of rival Helesi’s UK manufacturing operations, the UK’s leading supplier of recycling containers announced encouraging interim results for the six months ended 30th June 2010 and highly positive outlook.

Software Radio Technology’s (AIM:SRT) positive trading statement gave the share price a deserved boost this week.

Little known SRT provides high tech radio communications for global homeland security and safety markets.

Mr James Hussey, son of Marmaduke Hussey, Baron Hussey of North Bradley (former chairman of the Board of Governors at the BBC), and Lady Susan Hussey, woman of the bedchamber to HRH Queen Elizabeth II (one can assume that Hussey jnr. Knows which fork to use!), last week left the company in an apparent last ditch attempt to save a contract with the Reserve Bank of India, worth a reported 25% of the company’s entire profits! De La Rue has been extremely tight-lipped (printing money is a tight-lipped business!) over the events surrounding this move.

Over a period when the FTSE has remained flat and fears of slowing global growth has recently resulted in a stampede out of equities, the share price of Titan Europe has soared from c24p when we commented back in March 2010 to the current price of 72p. Half-Year Results for the six months ending 30th June 2010 will now be announced on 6th September 2010. Mining groups projected increased spending on big new projects should ultimately benefit Titan Europe and the high price of soft commodities should also offer support to the Group’s products supporting agricultural markets. Remains an interesting one to follow!

The Environmental Products and Services Group, and the UK’s leading supplier of specialist kerbside recycling containers issued a positive trading update for the six months ending 30th June 2010. Underlying Group profits are expected to be similar to those for the half year to June 2009 and the order book remains at the same high levels as at the beginning of 2010.

The AIM listed China based provider of online business solutions utilizing Enterprise Content Management (ECM) technology, recently announced its preliminary results for the year ended 31 March 2010. The usual cash generation concerns surfaced as did an unusual financing arrangement.
Many would have been surprised (at least for a China based business!) to see revenue down a material 15% to £12.5m, though profit before tax was reassuringly up 34% to £2.3m and basic earnings per share up 21% to 5.2 p.

Following a year that presented many challenges for the Group, the supplier of specialist instrumentation and medical equipment, recently announced excellent preliminary results for the year ending 31st March 2010 culminating in a restored final dividend.

Sanderson, the software and IT services group, continues to recover well from the late 2008 downturn. Although reporting for its first half that its customers still face tough conditions, new products have helped grow both the order book and new customer wins by 50% over the comparable period.

There was excellent news yesterday from Pressure Technologies, though you wouldn’t have believed it from the share price move! The group’s Chesterfield BioGas operating division has secured its first major order from Centrica plc, the owners of British Gas.

The environmental products and services group issued as very positive trading statement today ahead of its AGM, giving the shares a welcome boost ahead of the holiday weekend.

The environmental products and services group has announced that it has been named as one of four successful bidders for a framework agreement to supply plastic wheeled bins to the Eastern Shires Purchasing Organisation (“ESPO”) and the Central Buying Consortium (“CBC”).

The environmental products and services group announced outstanding Preliminary Results for the year ended 31 December 2009.

The AIM listed company focussed on the agricultural sector in central and southern Africa issued an operations update on its maize processing, milling and cattle ranching operations in Mozambique.

The leading designer and manufacturer of speciality engineering solutions for high pressure gas systems issued a trading update ahead of its annual general meeting on 10th February 2010; there was also news of an interesting acquisition.

The environmental products and services group has announced that it has been awarded contracts by four local councils in England to supply kitchen caddy food waste containers and compostable food waste bags worth a total of £1.3 million.

The leading designer and manufacturer of speciality engineering solutions for high pressure gas systems came out with an encouraging set of full year results. Underlying operating profit was up 10% to £5.4m and cash generation was excellent, with the group finishing the period with net cash of £7.9m. The year end order book remained substantial at £16m.  The group’s new Chesterfield Biogas division will be a big beneficiary of the Government’s Renewable Heat Incentive which is due to be announced in January 2010. 

The need to lower CO2 emissions is driving demand for products in smaller, more efficient gasoline and diesel engines and alternative power trains in hybrid vehicles – the group should be a major beneficiary.

Even by AIM’s somewhat looser standards of corporate governance yesterday’s announcement of the appointment of administrators to Aero Inventory plc, coming only 42 days after the Group announced an intention to move to the main market, is surely outrageous!

In what is becoming a saturated market Palm will surely struggle to compete, lacking the financial muscle and killer product (the Pre is not that product!) to build a sustainable position

The superconductor energy technology company, has announced that it has received a further order for its superconductor induction heater.

The AIM quoted engineering and construction group announced the award of two contracts with a combined value of around AUD $109 million

The developer of Dual-Fuel™ combustion technology that enables heavy-duty diesel engines to operate on a combination of diesel and natural gas, has announced that it has entered into a Letter of Intent with another major global truck manufacturer

An excellent set of interim results with cash flowing through, considerable potential in overseas markets and the interim dividend lifted.