Active Energy Group (LON:AEG) (AEG, 4.875p, £5.47m) has announced the sale of its non-core businesses, Gasignition in the UK and Derlite in Thailand, to the group’s CEO, Kevin Baker –who will leave the board and group on completion. To December 2009 the businesses had sales of £1.84m with a loss before tax of £0.30m, gross assets of £1.09m. In addition to the removal of the losses the group will also save some £0.15m annualised overhead costs. The consideration is £0.07m cash on completion with £0.475m deferred, payable in equal instalments over the next 5 years. We highly rate Active Energy’s voltage stabilisation technology that is logically targeted at industrial/commercial consumers of electricity – so maintain the Speculative Buy. Office2office (LON:OFF) (OFF, 129.5p, £47.02m) Trading for the managed procurement and business critical service is in line with management expectations. In the period 1 July 2010 to 28 October 2010, the group has secured large contracts in both the public and the private sector, valued at c.£6m per annum. Sales in the private sector are resilient and we are still waiting to see the adverse impact from the fiscal austerity. The market forecasts 2010 PBT of 12.4m, EPS of 24.9p and DPS of 11.4p. The stock trades on 10.4x with a yield of 8.8%. We do not believe the rating reflects our concerns over the group’s exposure to UK public spending cuts. This is a yield play, but there may be a short-term capital fall. We reiterate our BUY recommendation.

Feedback (FDBK, 1.875p, £2.05m) The prelims for the year ended 31 May 2010 are disappointing, with pre-tax losses of £0.25m (2009: profit £0.60m) on a 9% decline in revenues to £7.4m (2009: £8.2m). Overheads increased by 10%to reflect one off investments.  The outlook statement is poor, with current trading still weak. The group has reduced costs to reflect a decline in revenues. The group has zero debt, with net cash of £0.025m (2009: £0.269m). We believe the group will need to come to the market to raise funds. This encourages us to reduce our recommendation to a SELL given the risk of dilution.

Forbidden Technologies (LON:FBT) (FBT, 36.5p, £31.45m) Note the repayment of the loan to Stephen Streater, CEO, of the outstanding loan of £0.71m…

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