Stadium – 63p

20 April – AGM statement

The company has reported that the first quarter of 2010 has shown a significant improvement in trading over the first quarter of 2009, continuing the trend seen in the last quarter of 2009, when activity levels notably increased.  Although the shares have moved up from 54p last month, they still look cheap based on our forecasts of pre-tax profits of £3.1m for earnings per share of 8.2p.  With a prospective yield of almost 4% as well, the shares remain a BUY.

Filtronic – 30p

16 April 2010 – trading update

Electronics company Filtronic has today issued a disappointing trading statement covering the period from 1 December, with trading in the fourth quarter suffering from the continued delay in the recovery of telecoms infrastructure spend.  As a result of this, the company is expected to make a small operating loss for the year to 31 May.  The first half of the next financial year is also likely to be affected due to customers having an overhang of stock although recently announced contracts should mean that revenues increase from the start of 2011.  The company had net cash of £16.3m at the end of March, worth 22p per share, and, although in the short term the shares are likely to drift, they remain a LONG TERM BUY.      

Managed Support Services – 6.75p

15 April 2010 – acquisition/trading update

The group, our Share of the Year, has announced the acquisition of Data Sound Limited (DS) for £2.8m in cash.  DS is a specialist Health And Safety consultancy and the acquisition is expected to be materially earnings enhancing.  The purchase of DS is part of the group’s long term strategy to create a leading integrated facilities management and building services business in the UK.  Recent acquisitions have been successfully integrated and current trading is meeting management’s expectations, although the year to 31 March 2010 will show that the group made a substantial loss due to the closure of loss-making businesses and restructuring costs.  Following the acquisition of DS, the group is likely to acquire further operations in the areas of legal compliance as these tend to be resilient even in a downturn as their services are always in demand.  Although so far the shares have been very disappointing as they were tipped at 8.5p at the start of the year, we remain very optimistic about prospects and the shares remain a BUY.     

Pressure Technologies – 222.5p

12 April 2010 – notice of results and trading update

The group has confirmed this morning that trading in the six month period to 3 April has been in line with expectations.  This is slightly more encouraging than the statement issued in February although it may be prudent to wait until the announcement of interim results on 14 June before buying in.  HOLD 

Healthcare Locums – 208.5p

9 April 2010 – statement re possible offer

The company has announced this morning that it has received an approach which may lead to an offer being made for the company.  As is usual in these situations there is no guarantee that any bid will be forthcoming, but the shares are already moving up in response.  We always felt that the fall in the share price from January’s high of 287p had been overdone, because the latest so-called disappointing results were due to a change in accounting policy rather than a sharp downturn in business.  We therefore think that any bid, if it is to be successful, will have to be pitched up around the 300p mark to have any chance of success.  The shares remain a BUY.

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