Belgravium Technologies (LON:BVM) (BVM, 3p, £3.03m) Its AGM is suitably cautious, stating that although the sales-team remains very busy with enquiries with some substantial projects in the pipeline, the timing of firm orders remains very difficult to predict. H1 is traditionally the weaker period – but it feels that forecasts for profit growth may be optimistic. A flat PBT outcome at £0.41m would imply 0.3p EPS which would put the group on a current 10x PER. This feels a tad optimistic and we SELL the group down to a 8.5x PER - or 2.55p.

Chrysalis Group (LON:CHS) (CHS, 99.5p, £66.81m) Interims to March 2010 saw revenues of £32.7m (£31.2m) with underlying reduced loss before tax of £0.20m (£3.18m) and little movement in the overall net debt of £15.79m (£15.76m at the September year end) though the period did include proceeds form sales of property, plant, equipment and intangible assets of some £6.8m. Overall the group traded ahead of its own internal expectations, boosted by a 13.8% improvement in Chrysalis Music to £7.4m income, a strong run in non-publishing income from £0.4m to £1.2m with more stable revenues at publishing – up 1.6% to £6.2m and flat operating profits at Lasgo Chrysalis. The 1st April acquisition of First State Music Group is integrating well and is being rebranded as Chrysalis One. With a healthy release schedule the outlook is encouraging. Forecasts for the year of £0.55m would give 0.5p EPS, putting the group on a very substantial premium, indeed expectations of 2.4p next year would put them on a 41.4x PER. This is just too high given the fragile consumer environment – we SELL this to the 60p level.

Eg Solutions Plc (LON:EGS) (EGS, 46.5p, £6.65m) is well placed to deliver growth for the current year & beyond, c.60% of revenues for FY to 31/01/11 contracted. South African subsidiary started strongly, implementation of the £525k contract with leading SA investment administration company signed April underway - is expected to make a small positive contribution to FY. XTAQ (acquired March) integration progressing well, good indications of sales pipeline for Nuqleus 3D. Strong trading with positive cashflow so far this year. At 25th May net cash deposits £0.74m from c. £0.4m at 31 Jan 2010. Very upbeat statement but the valuation looks up with events discounting considerable growth. HOLD

Innovation Group (LON:TIG) (TIG, 10.5p, £98.22m) Interims to…

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