Companies: NWKI ��

Jon Moulton and Nigel Wray (a non-executive director) are backers of tech recruiter Networkers, which reversed into shell outfit Streetnames in April 2006 and focuses on the supply of telecommunications contractors in emerging markets.

Under youthful chief executive Spencer Manuel, Networkers issued positive numbers for the 13 months to December with total revenues burgeoning 61% to �54m and normalised pre-tax profits growing from �3m to �3.6m. Margins were maintained despite investment in the group’s global office network.

The financials included a mere one-month contribution from IT contract placement business MSB, acquired for �16m cash in November, dramatically scaling up the business and bringing access to its core IT markets. Stripping out MSB, an acquisition bringing new business as well as cost benefits, there was encouraging 28% sales growth within the profitable core business to �43m.

2006 was a year in which Networkers extended its global footprint in buoyant global telecoms markets through its Europe/Africa, Americas, Middle East and Asia Pacific divisions. Its unique selling point is a local presence in emerging regions enabling the group to support customers and contractors ‘within the same time zone’. Manuel is now able to sell MSB services into the group’s network to capture ‘convergence’ within telecommunications and IT.

This year, Alan Matthews at Seymour Pierce forecasts pre-tax profits of �4.2m from a top-line of �157m as MSB sales benefits bloom, ahead of �5.4m from revenues of �164m for December 2008. Those numbers produce earnings of 3p and 3.9p per share, placing Networkers on undemanding forward multiples of 13.5 and 10.4. Boasting an unbroken profits record, tapping into some burgeoning global markets and with the full MSB kick to come, Networkers looks an intelligent bet although investors should be mindful of historic tech sector cyclicality.