Companies: AVV    HVN    MRN   

Bridgewell has ‘no hesitation’ in retaining its buy stance on global staffer Harvey Nash, following the acquisition of Alumni for up to £8 million in cash. Purportedly the number one executive search and ‘leadership consultancy’ in Sweden, the acquisition of the profitable Alumni ‘has a great deal of long-term strategic logic as well as being immediately earnings enhancing’.

Selling mainly into the Swedish market, Alumni plans to move into Denmark and Germany in the current financial year, and Finland and Norway have also been earmarked. Following the deal, profit forecasts for 2008 have been upgraded to £7.25 million and 7p of earnings, while estimates for 2009 rise to £8.5 million and 7.9p, placing the £52 million company on forward multiples of 11.1 and 9.9 at the current 78p. ‘We believe that Harvey Nash offers diversified risk and strong top-line growth, together with massive potential upside in operational efficiency,’ Bridgewell says. The broker’s fair value rises from 100p to 115p per share.

Analyst Ian Jermin thinks shares in Nash’s support services peer Morson are ‘high enough’ for now and he retains a ‘neutral’ recommendation on the stock. His comments followed a confident AGM update from the technical contract staffing concern, which debuted on AIM at 160p in 2006 and currently commands a
251.5p share price.

Over in software, another set of record annual results from AVEVA, with underlying pre-tax profits of £28.1 million ahead of City forecasts, provoked positive comments from analyst Stanley Wolukau-Wanambwa. He continues to view the FTSE 250 business as ‘fundamentally undervalued’, anticipates revising 2008 forecasts and reiterates his 1000p target price for the shares, currently 914.5p.