Axon, the business transformation consultancy that manages change programmes for SAP-using corporates, continues to post rising margins and steady top-line growth. Interims ending 30 June were a revelation, with pre-tax profits romping 43.6% north to £2.9m on turnover lifted 8.4% to £26.7m. Stripping out goodwill and reorganisation costs, pre-tax profits were even stronger at £3.3m (£2.7m), and adjusted earnings ticked up 21% to 4.1p. Axon also closed the first half with a strong balance sheet, boasting cash balances of £17.3m (£14.5m). During the period Axon, steered by chief executive Mark Hunter, delivered on existing contracts, secured extra work from existing clients and began working with new clients in the consumer goods, retail and oil sectors. All in all, consultant utilisation was over 70% and reliance on a small set of clients reduced, with revenues from the top five falling to 69% (75%). Shareholders on the register in late October will be treated to a higher interim payout of 1.25p (1p). Assuming eps at least doubles to 8.2p for the full year, Axon is trading on a forward multiple of around 15.5, all underpinned by a healthy cash pile. Buy.

Axon Group	LSE	£416.33m	642.00p	0.00p
Click here for interactive charting
Other company articles:
Axon Group			03/07/2008
Build your defences			05/10/2007
Sky is the limit for Axon			28/09/2007
Axon			20/01/2005
Axon			08/09/2004