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Clarity Commerce Solutions

Companies: CCS   
28/11/2003

Growing software venture Clarity Commerce, a Growth Company Investor recommendation at 58.5p in May, has clipped higher on a first half turnaround scored in tough markets. And its strategy of moving into 'related but parallel' marketplaces looks to be paying off. For the interim period to September, the Bob Morton chaired play turned losses of £118,000 into a £227,000 profit, before interest and tax. Even at the bottom line, Clarity moved from a £429,000 deficit to a £194,000 profit. Turnover including acquisitions rose 43% to £4.85m. Clarity, which provides Epos, business intelligence, ticketing and loyalty software to the likes of pubs, nightclubs and health and fitness businesses, is growing both organically and by acquisition and moving into new markets. Last year it bought Romulus and Vision. More recently this August, Clarity snapped up the Pacer/CATS cinema software business - September saw the acquisition of Cyntergy, a training and helpdesk venture. Other bull points include burgeoning recurring revenues, which represented 40% of half year sales, and the winning of several major new contracts for its LeisureFlex software. Investors can look forward to further profits growth for the year. Last year, the company made £380,000 on £7.3m sales. Williams de Broe predicts £12.6m sales and profits of £850,000 for the current year to March.

Market cap: £9.89m
PE Forecast: 14.8
Share price: 71p

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