Fundamental-e, nominally an investment business, has only one holding in its portfolio, a 27% stake in Aim-listed ex-tech company WAP Integrators. It also wholly owns a trading company, a profitable computer component distributor in Cheshire called CCM Distribution. Group pre-tax profits at this venture were dwon from £1.2m to £611,000 in the year to September, on turnover down from £20.8m to £13.5m. This is a far from disastrous result given current market conditions, but costly dividend payments have cut cash levels significantly over the past few years, leaving the group with little to invest. Debts have been factored out to a debt servicing specialist, reflecting a difficult financial position, despite the company's historic profits. Chairman Robert Durston says that 'whilst the market looks to remain competitive it appears to be more stable and we feel that the company is in a strong position to benefit from this'. Given the lack of financial clout on its balance sheet, one might beg to differ about this. Avoid.