Stonking Small Caps: results in-line and compelling value
The founder of this fast-growing technology group has an impressive track record, having already developed and sold a sizeable high-profile business. While results for 2023 are in-line with forecasts, the loss of a large contract has cast a shadwo over the shares. Is this a sign of more troubles ahead or does it present an interesting buying opportunity for the long-term investor in an innovative UK company?
This fast-growing company’s systems and technology are setting new standards in reliability and are years ahead of competitors, attracting a growing number of government departments as customers, which had been delivering very strong revenue growth. The attractive growth prospects, high operating margins and return on equity and excellent cash flow means the shares deservedly command a premium rating, which is no longer the case, as you will discover here. While the current focus is on the criminal justice market, there is also considerable potential in the health and care markets, where the technology was first conceived. It's also increasingly rare to come…