Packet Science Ltd has sold more than three-quarters of its stake in SimiGon Ltd.
Packet Science is left with 2.76% of SimiGon and may even have sold more of these shares since the transaction on 12 May.
Simulation and training provider SimiGon won a five year contract at the beginning of May. The contractor logistics support contract with the US Air Force, which is worth $1.7m over five years. There will be a $300,000 contribution in the first year.
House broker finnCap forecasts a rise in revenues from $8.3m to $8.9m and an improvement in pre-tax profit from $1.4m to $1.5m, which is slower due to a reduction in margin from a high level. A dividend of 0.7 cents a share is forecast.
At 24.5p a share, SimiGon is valued at £12.3m. The shares are trading on around 12 times forecast earnings for 2015. Net cash is forecast to be at least $10m by the end of 2015, which covers around 50% of the market value of the company.
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