Companies: VTS   

Accountancy group Vantis says its business mix is changing, to enable it to prosper ‘during an increasingly difficult business environment’.

In a relatively positive trading statement, the AIM-quoted company, which made a marginally reduced £9.4 million pre-tax in the year to April on turnover up seven per cent to £94 million, points out that its business recovery division has continued to thrive.

Chief executive Paul Jackson is transferring resources from corporate finance, whose fortunes have weakened, to business recovery. Another division performing ‘particularly well’ of late is the financial management section of Vantis’s consultancy division.  

‘It’s tough out there, but we are fortunate,’ comments Jackson. ‘Two-thirds of our revenue comes from business advice, and business recovery, including bankruptcy and insolvency, is moving up to a quarter.’

Vantis, which has a focus on UK smaller and medium-sized companies and rich individuals, reckons the recession could last longer for smaller companies than for larger ones, which should help its work on administrations and asset-based lending. ‘We are not enjoying it,’ insists Jackson, ‘but the balance is one that gives us comfort.’

The company says that operating margins remain ‘robust’ and in line with management expectations. Vantis has generated enough cash to make its timely investment in the business recovery side and, argues Jackson, expects to reach its targets by ‘maximising its defensive earning streams’, in line with the ‘counter-cyclical nature of the Vantis business model’.  

Vantis shares have taken a pasting over the past two years, plunging from 278.5p in 2006 to 70p last month. Now 74.5p, they are not risk-free, but could reward a bold punt.

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Vantis	AIM	£38.76m	69.00p	0.50p
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