Belgravium trading update

An excellent trading update from Belgravium this morning:-

http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html?code=BVM&rbDate=released&preDate=Last3Months

Key bit states:-

"It was reported at the AGM that trading in the period had started slowly. Pleasingly trading picked up significantly in Q2 and as a consequence the results for the six months ended 30 June 2014 will show an increase in revenue and a significant improvement in profits compared to the equivalent period last year."

Trading is in line with expectations and second half weighted.

"The directors are encouraged by the level of enquiries and are confident that a good proportion of these can be converted to sales in the second half."

Broker forecasts:-

"Year Ending	Revenue (£m)	Pre-tax (£m)	EPS	P/E	PEG	EPS Grth.	Div	Yield"
31-Dec-14	10.20	0.70	0.66p	7.6	0.1	+65%	0.20p	4.0%
31-Dec-15	11.00	0.90	0.80p	6.3	0.3	+21%	0.25p	5.0%

This makes the shares look very cheap, particularly given current growth.

Appears to confirm my educated guess as to why the deal with Trakm8 fell at the first hurdle.  Belgravium are understandably looking for a premium price for the business, and Trakm8 management like to seek out bargain basement prices. Bodes well for both companies in the future.

Updates ACC, AVS and AVN

Following on from their interim results which were released this week, I notice that Michael Jackson has purchased another 500,000 shares at 2.9p (£14,500 worth) to add to his purchase in April of 1,280,000 at the higher price of 3.75p (£48,000 worth). Michael Jackson is the Non-Executive Chairman of Access Intelligence and now holds 10.36% of the company's issued share capital. You can see my previous blog for my thoughts on this week's interims.

I've also recently commented on Avesco who appear to be on track to beat market expectations for the full year. It's interesting to follow their Facebook page and Twitter feed where there appears to be a real leap in activity recently. This doesn't necessarily mean that business is booming compared to other years, but it does provide a timely reminder about the number of high profile events they are consistently involved in. Currently there is Golf's British Open and next week the Commonwealth Games. Yesterday they also announced this:-http://www.ct-group.com/news/ct-becomes-new-sponsor-eugames. Avesco is valued at approximately £20m and likes rewarding it's investors with chucky dividends.

Finally, Avanti Communications released a trading statement yesterday. It was a bit of a mixed bag, but given the highly speculative nature of an investment here, overall I remain encouraged by their progress. The key figures for me at this stage are that revenue is on track to meet market expectations at between $64m-$65m, and with a cash balance of $195m at year end they are well-financed. I am also encouraged that part of the shortfall in PBT is due to set up costs on large new projects, perhaps suggesting that revenue momentum is likely to continue. It shouldn't be forgotten that it's no mean feat getting two fully functional satellites into orbit, and in recent times their client list has become increasingly more impressive including the likes of Vodafone. Success certainly isn't assured just yet, and it's been a bumpy road but there are signs that the company is reaching a tipping point, and I certainly wouldn't write off the possibility of the company eventually becoming a takeover target.

Avanti is highly speculative as an investment, but whilst yesterday's trading statement caused an initial fall in the share price, there was an immediate bounce as longs honed in on the promising revenue momentum, current finances and the longer term opportunity. As a buy and hold investor you can ride out the fluctuations in share price movements over weeks, months and years if you believe in the company's long term prospects. Bears with short positions might be feeling a tad more nervous given Avanti's revenue momentum going forward and prospective cash generation.

Access Intelligence - interims

A solid set of interim results released today from Access Intelligence which look in line with market expectations.

It's still early days yet, but at this stage it's encouraging to see that recurring revenues are 79% of total revenues, up from 72% at the full year, contracted revenue not yet invoiced is up 22% to £6.7m from £5.5m in H1 2013, and total revenue yet to be recognised in the income statement is £9.8m up from £8.7m in H1 2013.

Cash balances are down by £1.13m over the year, but just £381,000 in the last six months.

The current trading statement is certainly the most positive that they have issued since I've been a shareholder where they state that:-

"The business pipeline continues to grow with a number of exciting opportunities on the horizon to deliver a combined product offering using the new platform."

and

"The consistent, year-on-year increases in contracted revenue not yet invoiced, our recurring revenue base and sustained investment in innovative product development, demonstrate the Group's long term stability and provide a solid foundation for continued growth."

Cash generation is good. Cash inflow from operating activities was £518,000 compared with £278,000 in H1 2013.
In the main body of the text it is clear that all divisions have performed well and prospects continue to improve.

The company is well under the radar of most investors.

The share price initially dipped on release of these results, but volumes were very light and a number of small buys quickly moved the share price back up.

I remain optimistic about Access Intelligence's future and potential growth prospects.

See previous update:-

http://michae1mouse.blogspot.co.uk/2014/04/access-intelligence-final-results.html