Good morning,

Earnings results from some decent AIM companies this morning such as

Prezzo (LON:PRZ) http://www.investegate.co.uk/prezzo-plc--prz-/rns/half-yearly-report/201409110700143676R/

and

M&C Saatchi (LON:SAA): http://www.investegate.co.uk/m--38-c-saatchi-plc--saa-/rns/half-yearly-report/201409110700073555R/

Both companies reported rises in everything. Note that Prezzo does not pay an interim dividend but does so at the final stage.

Away from results, environmental consultancy WYG (LON:WYG) announced an acquisition and trading update:
http://www.investegate.co.uk/wyg-plc--wyg-/rns/acquisition-and-trading-statement/201409110700173690R/


Acquisition of Alliance Planning

On 10th September 2014 WYG acquired the entire issued share capital of Alliance Planning for cash consideration of £3,200,000, creating one of the largest planning businesses in the UK.

... The acquisition will be immediately earnings enhancing for WYG. For the year ended 31 July 2013, Alliance Planning reported turnover of £2.7 million and profit before taxation (and before the remuneration of its owner-directors) of £538,614.

Which kinda suggests that the owner directors were taking every bit of profit but I haven't checked with WYG or Companies House. Still, immediately earnings enhancing is the key bit here.

There is plenty of to get stuck into in the trading update that provides further encouragement. The conclusion is:

Operating profit at the half year is expected to be more than 10% higher than the corresponding period last year and, on the basis of the developments described above, we anticipate that operating profit for the full year will be modestly ahead of current market consensus figure of £5.25m.

Against previous forecasts, the shares were on a P/E of 17.3, so the valuation appears to be moderating. Stockopedia forecasts EPS for 2016 of 8.1p, equating to a P/E of 13.7 for 2016. There is a dividend too.

AIM Prospector covered the company in May here:
http://issuu.com/aimprospector/docs/201405_issuu_aimprospector/c/sle52kz

Everyone have a great day.

David O'Hara
Editor, AIM Prospector

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