Servoca - 40% rise today

Servoca Plc describes itself as a leading provider of specialist recruitment solutions to the Education, Healthcare and Criminal Justice sectors. Its Security division offers security services to the public and private sectors.

Today (30th Oct.) it released a trading statement saying, "The Company is pleased to report that results for the year ended 30 September 2013 will be significantly ahead of market expectations and the Board is encouraged by the continued performance of the Group." It goes on to say that, "The September period, which is important for the Group's Education recruitment businesses, was positive and a marked improvement on the prior year. Trading in the second half and the platform established from our Education activities give the Board confidence on further growth in 2014."

A very positive statement indeed, and as a consequence the shares have risen 40% today in response, valuing the group at £8.2m.

Forecasts for this year came in at 0.3p on revenue of £45m. Looking at performance in 2009 diluted EPS came in at 2.78p. Clearly if they can return to those levels on the back of an improving economy then even after the substantial rise today the shares might look cheap.

The shares have traded as high as 48p/49p, but not for some considerable time. Net assets come in at just over £7m (mostly intangibles). The company has clearly been well under the radar of private investors and needless to say professionals, but it might be an interesting punt for some.

I don't own shares in Servoca, and it doesn't fit my selection criteria, however if economic recovery does take a stronger hold in the next year or two then I'm sure the share price has far farther to climb.

As ever, no advice intended or given.