Profiled this year by GCI at 45p, Sumus, the parent of Bristol-based Falcon Group and provider of value-added services to the consolidating IFA sector, delivered emphatic sales and profits growth for the half to March.

Sales surged 100% to �14m, buoyed by organic growth as well as a first-time contribution from Financial Services Advice and Support Ltd (FSAS), a September acquisition helping to increase the number of advisers in the group to 320. Pre-tax profits climbed 40% to �550,000 and cash flow from operations soared to �997,000 (�347,000), boosting cash balances 19% to �5.1m.

Taking its name from the Latin for ‘we are’, Sumus cheered shareholders with a 45% dividend increase to 0.32p. Gross margins waned to 13% (17%), reflecting the inclusion of the lower-margin FSAS for the full six months.

Chief executive Allan Rosengren insists the market for independent financial advice remains buoyant and ‘the sector is back to being profitable after years of losses or smaller margins’. Further acquisitions are likely in a market where ‘most businesses are still too small and we have absolutely no borrowings and �5m of cash’. He also insists the recent launch of Sumus’ own proprietary asset management product, The Brunel Funds, has demonstrated its ability to develop and successfully introduce new products to market.

Forecasts for the year to September from HB Corporate, upgraded to take into account a 50.1% stake acquired in existing Falcon representative Deverill Black, suggest Sumus can double turnover to �30.1m (�15.2m) and swell its profits from �581,000 to �1.04m. Earnings are set to grow to 3.6p (2.2p), ahead of 4.4p the following year, which means the shares trade on a forward p/e ratio of 14 and a budget PEG ratio of 0.2. Strip out cash and the EV/EBITDA rating is less than 7 times – compelling indeed for this fast-growing business. Existing investors should top up while they can.

Sumus	AIM	�14.53m	51.50p	0.00p
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