09/04/2008
Business communications counter ATC, whose partners and clients include BT, Cable & Wireless, HMV, Tesco and Somerfield, dialled up strong adjusted profits growth for calendar year 2007.
Pre-tax profits, before amortisation and one-off and non-cash costs, grew 35% to �6.2m, though profit before tax fell to �2.8m (2006: �3.7m). Sales grew by more than 60% to �88.4m, reflecting full-year flourishes from two key 2006 acquisitions, as well as strong 11% organic growth.
These strong results were achieved despite management having to integrate earlier acquisitions – chief executive Alex Tupman says further deals are 'unlikely' this year in the current climate – as well as restructure the group into three key divisions, ATC Solutions, Rocom and Servassure. Each arm has lately cheered with high-profile contract wins, trending towards more complex, higher-margin deals with the likes of Avaya and De La Rue.
ATC, with plenty of growth to go for organically, is focusing its efforts on the fast-growing IP-based parts of the communications market. Moreover, visibility levels are growing, with more than 70% of annualised sales now contracted and recurring. Having reached critical mass, strengthened its balance sheet and with further contracts set to excite, unloved ATC looks a compelling share price recovery play. Based on last year’s increased earnings of 8.1p (2006: 7.4p), the company trades on a miserly historic earnings multiple of just 4.4 times. Buy.
Growth Company Investor subscribers have full access to all our AIM and small-cap share recommendations. To subscribe today with a half-price offer, and gain immediate access to all the recommendations, click here.
James Crux
Related Articles: |
| 17/10/2008 |
| 13/10/2008 |
| 08/10/2008 |
| 03/10/2008 |
| 30/09/2008 |
People who read this article also read ... |
| 30/04/2008 |
| 28/04/2008 |
| 11/04/2008 |
| 08/04/2008 |
| 01/04/2008 |
| AIM | �7.52m |
9.75p
|
0.00p
|
|
Other company articles: |
| 30/06/2008 |
| 09/04/2008 |
| 11/07/2006 |
| 07/07/2005 |
Looking for Development Finance
We have reviewed and sorted 276 odd links for development finance - the top 10 list is presented here..
Development Finance
Looking for Development Finance? Review our comprehensive listings.
Small Business Bank Account
We present absolutely free financial information and a superior financial search system.