Advanced Computer Software (LON:ASW) (ASW, 32p, £113.56m) Trading update for the first 6 months of the year to August 2010 will show revenues up to £47.3m (£11m) reflecting the 5 acquisitions made in the previous year, with EBITDA of at least £12m (£3m) – ahead of market expectations. We maintain our BUY with a 48p price target.

Character Group (LON:CCT) (CCT, 141.5p, £37.35m), the designer, developer and international distributor of toys, games and giftware, reports sales for the year ended 31 August are ahead of market expectations. The performance in the current financial year has started well. We are excited about the group entering the US market, where we see huge opportunities in the long-run. The group continue to widen their product portfolio and wide their sales distribution in the UK and internationally. We remind investors Christmas is the key trading period for the group. A double-dip is a key risk for the group’s earnings going forward. However, we believe the group is undervalued trading on 8.3x in 2010 and 7.5x in 2011. The low valuations with a yield of 2.1% in 2010 and good growth prospects (Yr 1 prospective EPS growth of 24%) justify our BUY with a target price of 156p.

Clyde Process Solutions Plc (LON:CPSP) (CPSP, 55.5p, £22.41m) has two orders totalling just less than £1.9m. Has won a £1m contract from a Chinese manufacturer of PVC resin for a series of conveying and truck unloading systems. In addition it has won, via its MAC Equipment subsidiary, an £880,000 order from a leading worldwide food manufacturer for bulk unloading systems and other manufacturing line equipment for an expansion at a plant in the USA. Our last recommendation was limited to a Hold by the 64p price target, but that is sufficient upside now to return the group to a BUY.  

Innovation Group (LON:TIG) (TIG, 9.9p, £92.61m), the global provider of business process outsourcing and technology solutions to the insurance, fleet and automotive industries, has secured a five year contract with Enterprise Rent-A-Car, the world’s largest car rental specialist. The contract is expected to generate £25m over the next five years.  Volumes associated with the contract are expected to ramp by Q2011 and help to underpin the Board's current expectations for FY 2011. This is a key milestone for the group. The benefit of the investment in the BPO…

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