News blog
Servoca
- BY: Andrew Hore |
- POSTED: 31/01/2010 |
Servoca returned to profit last year and has a strong base from which to grow organically and by acquisition.
The educational, healthcare and security recruitment and services provider reported a 37% increase in revenues to £57.6m in the year to September 2009. A pre-amortisation and exceptionals loss of £1.03m was turned into a profit of £2.21m. Reducing overheads helped with the improvement.
Educational recruitment is the biggest profit contributor but the biggest improvement in underlying profit was in the healthcare business. These markets are expected to continue to be resilient with healthcare offering the best prospects.
Net debt was £3.41m at the end of September 2009. There is also contingent acquisition consideration of £460,000.
Servoca wants to acquire further recruitment businesses in its current sectors. It believes that the pharma and life sciences sector could offer the best prospects.
At 17.5p a share, Servoca is valued at £20.7m. House broker FinnCap forecasts a rise in profit to £2.7m in 2009-10 and Servoca’s tax losses are running out so it will start to pay tax. The shares are trading on nine times prospective 2009-10 earnings.
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