Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Veltyco (VLTY) has announced results for the 2016 calendar year and that it “is confident that the group will continue to deliver strong growth”.
The results show an increased adjusted pre-tax profit of €1.74 million on revenue up to €6.1 million. However, in particular, an also more than €1.7 million increase in receivables meant cash was only slightly higher at €0.14 million.
Current assets on the balance sheet of €4.3 million compared to total liabilities of €1.1 million, but the receivables need to be kept an eye on (“trade and other receivables” increased to represent €2.6 million of the stated current assets).
The announcement also included that “the directors believe the company will be able maintain momentum and that the group is well positioned for the remainder of the year and the future” and that they also “believe that the two acquisitions announced on 13 April 2017 represent an exciting opportunity for Veltyco to further expand and grow its business by building on existing online brands, using its expertise in online marketing combined with award winning sportsbook technology in SBTech”.
We concluded on those we can only wait to see, but that a prior cracking trading update had further enhanced confidence of significant progress in any case and our stance was buy at 42p or below.
The shares are now at 50p, capitalising the company at £36.6 million – though this compares to a pre-tax profit we now expect to be above £4 million in the current year. Such growth sees the stance, despite us now being well ahead on the initial 35p offer price January recommendation, still be hold.
This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tips from Tom & Steve and a new shorting piece from Lucian this week click HERE
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