Avisen (LON:AVI) (AVI, 4.625p, £10.48m) has reached a settlement of a claim against Exploite that was made before its acquisition by Avisen. Against a claim of £4.5m the group has agreed a payment of £0.3m with a deferred of the same again dependent on an exit within 3 years or certain other considerations. We continue to rate the group a HOLD.
Dewhurst (LON:DWHT) (DWHT, 280p, £9.27m) Trading update for the year ending September 2010 reports results will be significantly ahead of market expectations – primarily due to better performance from Europe and Asia with help from exchange rates. Forecasts ahead of the update were £3.6m PBT with 29.8p EPS – so a move to £3.9m with 32.3p EPS would put them on a soon to be historic 8.7x PER. This does allow some upside and we return the group to a BUY with a 310p price target.
Endace (LON:EDA) (EDA, 180p, £26.97m) Trading update for the first six months to September 2010 reports the group expects a loss before tax of some $1.3m with cash balances of $1.3m at the end of the month (against $1.7m at the end of March). Still a HOLD.
Focus Solutions Group (LON:FSG) (FSG, 92.0p, £27.37m) The trading statement ahead of the interims to 30 September 2010 is positive, with performance ahead of expectations. The provider of multi-channel distribution software to the financial services market expects sales to be up over 25% against the previous year to £5.4m, with a dramatic improvement in operating profit to over £1.1m (H109: £0.1m). The group has a strong order book with 80% of the forecasted revenues already booked. The Coaching Platform acquisition is delivering £0.5m of licence sales in H1 2010. We believe there is scope for the market to upgrade current 2011 estimates of PBT of £2.9m and EPS of 7.0p. The share price has rallied since buy recommendation following the recent £10m contract win. We are pleased by the group’s performance and believe a current 2012 PER of 7.5x does not reflect the strong order book and the high quality of earnings. Despite the group exceeding our previous target price, we retain our BUY recommendation and increase our target price to 128p…
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