Trading started to pick up in the second quarter for the online analytics and enterprise content management services provider IS Solutions.
Bookings have started to build up and they underpin expectations for the rest of the year. Clients need software that enable them to process the data that flows through their businesses. Project revenues have increased so far this year and this should boost longer-term managed services and support recurring revenues.
In the six months to June 2013, revenues were 10% higher at £4.96m, while pre-tax profit improved from £337,000 to £345,000.
Net debt was £127,000 at the end of June 2013. IS Solutions went into debt when it acquired the freehold of its office in order to save the rent money and the company should get back to a net cash position by the end of the year. There is also a £800,000 investment in an analytics business. The interim dividend has been increased from 0.44p a share to 0.48p a share.
House broker finnCap forecasts a rise in profit from £900,000 in 2012 to £1m in 2013. The shares are trading on 13 times prospective 2013 earnings.
At 46.5p a share, IS Solutions is valued at £11.8m.
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