Fast-growing trade finance play CCH ‘helps trade happen’ in the increasingly global economy, offering a range of trade finance solutions suitable for institutions and corporations looking to raise finance or offer credit, with a heavy focus on Sharia-compliant products.

Figures for the year to December from the company, the fourth best performing share on AIM in 2006, proved stellar stuff indeed with ‘good deal flow’ translating into a surge in profits. From a low £700,000 base, pre-tax profits surged dramatically to £3.9m on a dramatic near-300% sales surge to £19m, with CCH maintaining its market-leading position in Sharia-compliant trade finance products.

Finance director Patrick Kennedy says, ‘The Sharia aspect doesn’t relate to our customers, it relates to funders (Islamic banks in the Middle East) who wish to fund Sharia-compliant projects.’

Recent highlights include an agreement with Bill Express for an AUS$80m (£34m) facility (the first Sharia-compliant trade finance facility of this size and scope provided to an Australian-quoted company) and continued development of Sharia-compliant trade finance products, cementing the company’s leadership in this fast-growing field. The acquisition of CCH Investment Consultants EC, licensed by the Central Bank of Bahrain to provide investment advice, opened up further opportunities in the Middle East. ‘Large deals we considered one-off are now becoming more regular,’ teases Kennedy, ‘and our funding lines are now in the hundreds of millions of dollars.’

Based on last year’s 130% rise in earnings to 2.76p, CCH trades on a demanding historic multiple of 27 times, though the rating is understandable, if pricey, given earnings growth rates. Liquidity has been further boosted by the recent sale of shares by the group’s German subsidiary as well as an additional listing on PLUS.