We’ve been consistent holders of print management counter TripleArc, which we backed at 15.5p. Encouragingly the shares, which have put in a somewhat volatile performance of late, ticked higher on emphatic 2004 figures to December. Adjusted profits rocketed 301 per cent north to £3.3 million, on turnover up 134 per cent at £48.7 million, and there was a £1.8 million improvement in cash inflow to £3.4 million.

CEO Jason Cromack touted 2004 as a year of huge progress in which Access Plus, the transformational print management acquisition of late 2003, finally bedded in and exciting contracts were clinched. TripleArc is moving away from ad hoc print supply deals towards longer term print management contracts. Last year’s wins, with BAA, Virgin Retail, and BMI Healthcare amongst others, were worth £32 million in aggregate. And TripleArc is also preferred bidder on a deal with a mystery ‘large financial services’ business.

Furthermore, the December acquisition of direct marketing fulfilment outfit Stream, which added data management and fulfilment services to the mix, broadened the skill set. In our view, TripleArc remains a compelling growth story. With Altium Securities’ Andrew Nussey forecasting profits of £5.1 million this year, giving a forward p/e of only 10.5, we say keep holding.