Revenue rose 19% to £29.1m, and profit before tax was up 17% to £3.2m. This translates into basic EPS up 26% to 14.6p (EPS is flattered by a Corporation Tax charge which has fallen from 28.2% last year to 20.0% this year).
The year-end net cash pile of £8.9m has since been spent on the acquisition of an American company in a similar space, virtual queuing systems, called Accesso. That used up £4m of the cash, and incurred £4.0m in debt (which has been refinanced with Lloyds today, as planned), plus an additional payment made in 1.8m new shares. So they are effectively now more-or-less cash neutral.
LOQ has clearly been a success story, as the historic data table below shows;
Interesting to note however that EPS has actually been flat from 2008-2011 at 11-12p. (please note that TTM is "Trailing Twelve Months")
That has jumped to 14.6p for 2012, and is forecast to grow again to 16p in the current year (ending 31 Oct 2013), fuelled by the acquisition of Accesso. There is no dividend.
I like the company, but remain sceptical about the elevated valuation. The market cap is now around £90m, or 3 times sales, at around 450p a share. I cannot see how this represents value at 31 times EPS just reported, and 28 times forecast EPS for the current year. But we are in a bull market, and valuations for growth companies are becoming pretty racy again, so who knows maybe the momentum will keep going here? To my mind a sensible price would be around 300p, or just under 20 times current year forecast EPS.
However, I also know how enthusiastic shareholders are about LOQ, and if you think they are likely to beat forecasts, then the numbers might stack up on a long term view at the current share price?
(Edit: new Edison research note on LOQ just published, click here to view it)