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Bond International Software

  • BY: Andrew Hore |
  • POSTED: 14/12/2009 |

Constellation Software has taken a 3.48% stake in Bond International Software.

The stake in the recruitment sector software provider was increased to a declarable level on 10 December – the day after Bond issued a profit warning.

Constellation is an acquisitive software company. TSX-listed Constellation bid 25p a share for membership and education software provider Gladstone at the end of 2008. It failed to gain the backing of a majority of shareholders but it retains 29.9% of Gladstone.

Trading has deteriorated since the interims. Existing customers are ordering less and other contracts have been deferred. A move from a sale model to a rental model has also hit short-term revenues.

This will improve the quality of long-term earnings and management is talking up prospects for 2010.

Cenkos forecasts 2009 profits of £1.6m – the interim profit was £799,000, which was barely much more than one-half the previous interim profit. The 2009 figures will be announced on 14 April.

At 61.5p a share, Bond is valued at £20.3m. The shares are trading on more than 17 times prospective earnings for 2009. Net debt was £2.4m at the end of June 2009.

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