Customer relationship and marketing software provider smartFOCUS reported doubled profit of £309,000 in the first half of 2010.
Revenues grew 17% to £6.59m, with 63% of them recurring. The UK accounts for three-fifths of revenues. The company has added 30 new customers during the period as well as signing up new regional partners. The biggest customer is less than 7% and there is a good spread of sectors, although finance, media and retail make up the majority of the business.
Arbuthnot forecasts a full year profit of £800,000, compared with £490,000 in 2009. There is already 88% visibility of the 2010 forecast revenues of £13.4m.
There was £2.21m in the bank at the end of June 2010. The second half is normally much more cash generative than the first half. Management is considering starting to pay dividends but a share capital restructuring will be required to do that.
There is consolidation in the sector and smartFOCUS is well-placed to make add-on acquisitions. New capabilities would be particularly attractive.
At 14.25p a share, smartFOCUS is valued at £13.6m.
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