This week: How Cello is starting to play to a new strategic tune, why Just Car Clinic is no car crash dummy, and why the Glenlivet exploration well now looks less whisky
Bglobal plc (BGBL 42.75p / £32.61m)
We have reported good news many times in the past few months for this market-leading provider of smart metering services to the UK energy market. And since we last wrote on the share, it has doubled. Last week Bglobal announced two new deals. First, an agreement to deliver smart metering services to Gazprom to supply and install its latest generation of smart electricity meters to its growing base of UK business customers; and, second, an agreement with Superdrug to install smart meters at all of its UK stores, totalling more than 900 sites. Although the share price has done well, we believe there is much more good news that could come from this company.
Cello Group (CLL, 38.5p / £22.5m)
Cello is less a case of fiddling while Rome burns and more a case of adjusting strategically while the recession bites. In the six months to 30 June 2009, the direct marketing and market research group saw operating income decline by 10.9 per cent. But careful financial management saw staff costs reduce by 8.1 per cent, leading to positive adjusted earnings per share of 2.81p. The group now plans to increase its focus on marketing services to the healthcare and ‘well-being’ areas, which means not just pharmaceutical companies, but health and beauty retailers and public sector health campaigns. Finance director Mark Bentley told Hybridan that this strategic shift provides employees with a clear direction. But another key benefit is that these areas are typically less vulnerable to macroeconomic pressures. Despite the tough economic climate, Cello looks to be astutely reducing its financial risk.
Crimson Tide (TIDE, 1.48p / £4.91m)
We wrote on Crimson Tide a few weeks ago following its landmark full-year results, which trailed month-on-month positive cash flow this year. This one slipped through the net in last week’s Small Cap Wrap. We see the company evolving quickly and part of this evolution has been the recently announced disposal of the group’s Time and Attendance business in Ireland for €105,000. This leaves the group focused on its core offering of mobile data solutions for the facilities management, healthcare and finance and insurance sectors. One…
