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County Contact Centres - SPECULATIVE BUY

Companies: CUY   
13/08/2007

Software provider and call centre operator County Contact Centres has posted record profits for the year to June as the momentum that began two years ago gathers pace.

Pre-tax profits powered ahead 78% to £305,000 last year on 22% growth at the top line to £3.57m, while year-end cash balances improved £114,000 to £414,000.

The group is behind ‘24/7’ contact centre and business services bureau Ansaback as well as CallScripter, a cost-saving customer interaction software suite. Each part of the business contributed to the improved figures with Ipswich-based Ansaback growing in direct response television advertising, accident management and the eco repair market, and CallScripter scoring a 58% increase in sales. Management believes the market for Ansaback services will continue to grow as clients look to maximise returns on advertising and promotion. Furthermore, orders from the UK and abroad for CallScripter software have improved following a broadening of the product range.

County Contact Centres, quoted on AIM since 2000, recently underwent a capital reorganisation, which will allow for dividend payments in the future. With the business operating in growing markets, and acquisitions and partnerships under consideration to enhance organic growth, County Contact Centres has speculative appeal, although prospective investors should bear in mind this is a small company and the share price can prove volatile on small trades.

Market cap: £5.362m
PE Forecast: n/a
Share price: 18p

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