Give 'em that old Razzall Dazzle?

Boxhill Technologies is a micro-cap company that has been on my monitor for a short while, although I haven't purchased any shares in the company.  Investors who bought shares in April this year will be sitting on excellent profits since the share price has already multi-bagged during that short period.

The company appears to be making a dramatic turnaround in it's fortunes and reported an operating profit for the six months to 31 January 2015 of £296,000 which compared favourably to an operating loss of £49,000, before discontinued operations and exceptional items, for the six months ended 31 January 2014.

The company appears to be an eclectic mix of businesses and describes itself as a lottery, software, gaming and leisure company.

The balance sheet is ok, although tangible net assets are just over £200,000 against a market cap. of around £6m. At the interim stage the company was cash generative to the tune of £431,000.

The attraction of Boxhill is undoubtedly the sudden growth surge. From the most recent trading update, operating profits are likely to come in around £600,000 to £650,000. My rough calculations estimate that the shares are trading on a very modest p/e ratio of less than 10.

The most recent trading statement also suggests that the current financial year is likely to be even stronger :- "Operating profits continue to increase, not just compared with the year to 31 July 2014, but also comparing the second and first halves of the year to 31 July 2015."  Good news indeed.

On the face of it, this looks like a promising micro-cap and despite it already multi-bagging, there does appear to be more to come.

One small  niggle might be that Lord Timothy Razzall, the Chairman of the Company, has been a recent seller, although he says that this was to meet personal obligations. He still retains 4.33% of the company.

As I stated earlier, I am not holder and my interests lie elsewhere at the moment, but it's certainly one that merits further investigation. Of course the question is, whilst it's certainly got that old Razzall Dazzle, will it ultimately Razzle Dazzle 'em?