Profiled here at 45p early last year, shares in Sumus moved as high as 55p but have since settled back at 45.5p. The Bristol-based independent financial advice group remains good value, having lifted pre-tax profits by 76 per cent to £1.5 million in the year to September, on sales increased by 96 per cent to £29.8 million, with further acquisitions believed to be under negotiation.

Profits and turnover growth reflected the acquisition of Deverill Black & Co, another IFA group, for £750,000 in cash and shares last March. During the year, the AIM-quoted company launched The Brunel Funds, its own fund management arm, and attracted £5 million to invest. CEO and key shareholder Allan Rosengren says Sumus, which has £2 million to £3 million cash on top of regulatory requirements and no debt, is seeking out and talking to potential new acquisitions. He concedes that the current turmoil in financial markets makes the short-term outlook uncertain, but argues that customers’ continuing need for financial advice for their lifetime needs should secure medium-term prospects and that the recent sell-off means the stock market has to be better value.
‘These are the best times to make financial plans,’ he suggests. ‘Although this is a challenging time, it will be seen as a blip.’

Setting a 60p share price target, Arbuthnot, which replaced HB Corporate as Sumus’s independent financial adviser and broker in July, reckons the company can increase profits by a more modest 20 per cent to £1.8 million pre-tax in the current financial year, with £2.2 million on the cards for 2008/09.

Trading on an undemanding forward multiple of 12.6 times based on this year’s 3.6p of forecast earnings, the shares should still outperform several sector peers. Consider topping up existing holdings.