A two-thirds jump in revenue together with profits up by more than a half in the six months to the end of June show Velosi is on course to achieve the market’s expectations for 2007. That would leave the shares (now 131p compared with a recommendation level of 97.5p in December last year) selling for not much more than 14 times earnings. With good contract momentum, positive returns from recent acquisitions and a strong oil industry marketplace to sell into, Velosi looks cheaply rated. The one danger is that its rapid geographical expansion may prove over-costly or run into a problem. But other than negative cash flow in the half, there is no sign of that to date. The shares look 30 per cent undervalued. Continue to hold.

Velosi	AIM	£23.09m	55.00p	0.00p
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Other company articles:
Revenues ‘strong’ at Velosi			22/07/2008
Velosi on course for target			28/09/2007
Velosi wins five new contracts			31/08/2007
Velosi ‘in line’			27/07/2007
Velosi expansion pays off			23/07/2007