32red (LON:TTR), the online gaming operator, reports interims to 30 June 2010. Total revenues increased by 33% to £7.8m (H109: £5.8m) predominantly driven by 29% growth in casino revenues and the casino acquisition. A 12% decline in poker revenues was offset by the strength of casino revenues. The revenue growth drove adjusted PBT to increase by 38% to £0.3m (H109: £0.2m). The group added 12,289 new casino players, up 26% on H109 and the group had 19,497 active casino players up 35% on H109. As important the cost of acquiring each new casino customer fell to £86 (H109: £89) – though the impact of the recession led to average casino player yield falling by 4% to £346(H109: £360). The business is debt free, with net cash of £1.1m at the end of the period. The outlook statement is somewhat positive. Trading in July and August remained strong, with revenues up 19% on the previous year and average daily revenues up 6% on H1 2010. The group’s strategy is to focus on the UK market, whilst monitoring regulatory developments in Europe and the Rest of the World with a view to expanding into new markets should attractive opportunities arise.  Despite the Board stating they are comfortable with current FY2010 PBT and EPS estimates of £1.1m and 1,9p respectively – we believe there is still scope for the market to downgrade forecasts. Assuming market expectations are achieved, the stock is rated on 7.9x 2010 earnings. We are encouraged by the progress the group has made and therefore reiterate our BUY recommendation, but reduce our target price back to 20p. (Amisha Chohan) 

Belgravium Technologies (LON:BVM) Interims to June 2010 has seen revenues decline to £3.66m (£4.29m) with PBT of £0.03m (£0.14m) and EPS of 0.03p, (0.11p). The group ended the period with net debt of £0.71m (£1.41m at the Dec year end), reflecting operational cash-flow and a positive working capital movement. The group has reported an improvement in outlook with a £3m order book for delivery over the next 30 months supporting the view of a stronger H2 performance. Existing forecasts of £0.56m with 0.4p EPS look too optimistic and look set to fall. A more reasonable expectation of £0.4m PBT with Forecasts of £0.4m PBT with 0.31p EPS (assuming a 20% tax charge) puts the group on an 8.9x PER – still too high and…

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