It's been a fairly quiet time regarding tangible news stories for many of the stocks I hold or am interested in, but since AIM stocks have become 'ISA'able I have detected that certain companies listed on this market have sprung into life. I mentioned UBC Media yesterday which is one such example.
Another company that I have invested in recently is Belgravium Technologies which has also shown signs of life in the last couple of trading days, rising by 13% today.
The company describes itself as follows:-
"Belgravium Technologies plc ((AIM:BVM) 'Belgravium' or 'The Group')), designers and suppliers of computing solutions and services for mobile data capture applications to a wide variety of industrial sectors".
I have been accumulating shares in Belgravium at prices below 3p.
Whilst they described their year end results for 2012 as disappointing with revenues of GBP8,669,000 (2011: GBP11,157,000), profit after tax of GBP336,000 (2011: GBP876,000), a maintained dividend of 0.1p (2011: 0.1p), strong cash flows and net cash position of GBP1,566,000 (2011; BP1,074,000) and EPS of 0.33p (2011: 0.87p), at 3.25p the historic p/e is around 10, if they can eventually return to 2011 levels of profitability then the p/e drops to 4. The dividend yield is 3% and they managed to improve their cash balance by £400,000.
Their trading statement reads as follows :- "2012 was a challenging year and we do not expect our markets to change significantly in 2013. However, the Group has a strong balance sheet and has initiatives in place which should at least ensure improved profitability in the current year."
If you look at the figures and project forward to any improvement in profitability in the future then, even after today's rise in the share price, the company looks cheap.
They also state that :- "Whilst the Board believes it is important to maintain cash reserves for development and investment projects, it is also committed to maintaining the payment of dividends, a policy restored in the previous year." It's always nice to receive a dividend payment and I see this as a sign of confidence going forward.
The current market cap. is around £3.3m. The company has negligible debt and has recently acquired a company called Feedback Data plc for a consideration of £600,000.
"FDP specialises in workforce management for companies operating in both the industrial and retail environments with an impressive list of clients within the logistics, manufacturing, healthcare, leisure and consumer retail. FDP's systems sit behind thousands of workers capturing millions of actions using wired, wireless and cloud based networks."
Interim results will be released on 6th September and it will be interesting to assess current trading and how the integration of their recent acquisition is progressing.
Given the fundamentals and a more conducive trading environment, it is difficult to see any downside from here. As mentioned already, any indication of trading returning to 2011 levels should see a significant spike in the share price.
Anyway we won't have to wait too long to find out!
As ever no advice is intended or given.
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