Companies: BVM    GNS   

Teather & Greenwood analyst Adam Lawson argues Belgravium Technologies’ forward p/e of less than nine times – for the current year to December 2006 – offers ‘outstanding value, both relative to peers and the broader market’. His comments follow the data capture system group’s 2005 numbers, which showed pre-tax profits coming in at £980,000 on £5.43 million sales.

Steered by chairman John Kembery, Belgravium has been through a year of great change, making two product-range-expanding acquisitions and capturing its biggest-ever single order, a £750,000 deal with Grattan for the supply of Atlanta terminals.

2006 has started slowly, reports Lawson, ‘but then this has always been a business where seasonality and lumpiness of revenue are unavoidable features of the trading landscape’.

Over at Genus, T&G is targeting 560p a share, even after a 47 per cent re-rating to 470p since the completion of the £187 million acquisition of Sygen International. This outfit applies quantitative genetics and biotechnology to animal breeding, helping pig and shrimp producers enhance meat quality.

The market has already warmed to bovine genetics play Genus’ growth profile following the deal. However, argues Stephen Thomas, Genus’ new classification within the biotechnology/health sphere still leaves it trading at a harsh discount to comparable companies.

For March ‘06, investors should expect sales of £217 million, and profits of £13.7 million, giving a forward rating of 21.4. ‘Buy,’ says T&G.