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IS Solutions

  • BY: Andrew Hore |
  • POSTED: 11/09/2011 |

Online technology services provider IS Solutions is trading strongly even though software sales declined in the first half and the outlook remains positive thanks to good demand for web-based analytics. 

Revenues fell from £6.41m to £4.05m in the six months to June 2011 but this was mainly down to the lack of low margin software sales to government departments. Growing analytics business helped to improve gross margins. Pre-tax profit rose from £215,000 to £310,000.

FinnCap forecasts a rise in full year profit from £700,000 to £900,000.

IS Solutions has used its cash to increase its investment in analytics software firm Speed-Trap Holdings from £200,000 to £700,000.in the medium-term Speed-Trap is likely to attract the interest of larger software companies and that should provide an exit. IS Solutions is generating revenues from Speed-Trap anyway.

Net debt was £1.48m at the end of June 2011. The business remains cash generative. The interim dividend has been increased by 11% to 0.4p a share. 

At 41p a share, IS Solutiosn is valued at £10.1m.

Download the September 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2011_24.pdf

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