Amiad Filtration Systems (LON:AFS) (AFS, 193.5p, £43.58m) has acquired the remaining 50% in its Chinese distributor for $3.1m in cash. Following the approvals the group will wholly own 5 regional offices with 70 employees in China. It plans to widen its Chinese manufacturing base as well as invest in sales and marketing. With proven expansion in India and Turkey this is a logical step forward in the group’s presence in a very significant sector. We see the group’s 11.4x PER Yr 2 rating as still offering upside and we move the shares to a BUY with a 220p price target to reflect the potential for its water filters and filtrations systems.  

Craneware Plc (LON:CRW) (CRW, 586.5p, £152.28m) AGM trading statement has highlighted a strong start to the year and the group is looking forward to the launch of its 6th product, the Value-based Pricing Analyser, before the year end. Forecasts put the group on 35x PER this year, falling to 28x PER next, more than high enough. We maintain the Sell but do note the opportunity for EPS accretive paper-based acquisitions given these ratings. SELL to 480p.

Eg Solutions Plc (LON:EGS) (EGS, 97.5p, £13.93m) has secured a contract with an existing South African investment administration company, to provide outsourced healthcare services. The value of the contract is c.£0.75m, with over two-thirds (over £0.5m) to be recognised in the current financial year ending January 2011. We believe further contract wins will help support the current share price. We reiterate our HOLD recommendation.

Gresham Computing (LON:GHT) (GHT, 27.0p, £15.70m), the specialist provider of real-time financial solutions, reports a positive IMS for 1 July 2010 to 1 November 2010. The group remains profitable and expects to exceed full year expectations of 0.2p of earnings.  The group continue to win new business. The renewal of a major software contract, valued at £1.3m over 4.5 years, with the full cash payable in Q4 2010 is excellent for cash flow and revenue visibility.  The outlook statement is positive with strong trading in license sales and implementation services. The group has a good order book and pipeline for 2011. However, if there is a double-dip in the market, banks…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here