Belgravium Technologies have released an encouraging AGM trading statement this morning, alongside a contract win for around £420,000 with a European airline operator. Trading in the year to date is "significantly ahead of the equivalent period last year", although they also add that "it has commenced more slowly than anticipated". They also state that their new sales strategy has created a good deal of opportunity, and that the separately announced contract is in addition to an earlier contract win of £1.1m with First Great Western.
Significantly, cash flow looks strong and they now have £1.9m cash on the balance sheet which is similar to that prior to the Feedback acquisition.
Last year's earnings were around 0.4p, so if they are significantly ahead of this figure then the forward PE will be a single digit for 2014. Broker forecasts for the dividend payout, at 0.2p, would be double 2013's distribution, and amount to around 4.7% at the current share price.
I like these small, profitable and cash generative companies which can demonstrate good growth at a reasonable price. In fact BVM looks cheap to me.
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11967696
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11967603
In other news, Avanti Communications have announced yet another contract win.
Whilst an investment here is highly speculative, the quality and quantity of contract wins in recent weeks and months is very encouraging, and I intend to hold on and watch developments.
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11967629
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