Companies: AMU    SPI   

Last month saw two of our Company Watch recommendations deliver record figures.

First up was support services outfit Spice, which chimed in with excellent maiden AIM figures for the year to April – the shares, which we backed at 197.5p, remain comfortably ahead of our recommendation price at 223p.

Led by chief executive Simon Rigby and chaired by the renowned Sir Rodney Walker, Spice provides outsourcing services to the electricity, water and telecommunications sectors. The full year figures showed profits sparking up 117 per cent to £5.2 million, and earnings per share lifting 87 per cent to 11.6p. Rigby cheered followers further by announcing a total dividend of 2.2p.

His strategy for the coming year is more of the same organically, although acquisitions are also on the radar – Rigby is said to be ‘pleased’ with July acquisition Lamva, a provider of civil and electrical services to the electricity utility sector acquired for £5.9 million.

Budget entertainment counter Air Media was the other announcing record profits for the year to March, although its numbers received a dramatic shot in the arm from Music Box, the £37.15 million reverse takeover deal that has brought considerable distribution synergies to the group.

Underlying profits surged 126 per cent to £4.3 million, as turnover leapt 216 per cent to almost £50 million. Acquisitions contributed £35.4 million to turnover and £4.1 million to profits. A maiden dividend of 0.012p a share was declared.

The one note of caution in the results was the news that a maturing DVD market has prompted management to question the ongoing value of its budget DVD business. Air Media, which we backed at 7.5p in May of last year, trades just below that price now. If you are still in, keep holding.