Hot share tips and all the big AIM exposes from the City's most-connected reporters
By Steve Moore | Friday 18 August 2017
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.
Having reached 18p last month, shares in e-procurement software provider EU Supply (EUSP) had slipped back slightly – but are currently further higher on the back of a “Contract win” announcement. This following a trading update earlier in the month…
The contract news is of a third contract pursuant to a framework agreement announced in June. This latest “comprises certain customer-paid enhancements, which are expected to generate revenues of approximately €120k during the remainder of this year”, with discussions “continuing with the customer on further specific call-off orders for additional services to be delivered in 2017 and 2018”.
This compares to a house broker revenue forecast for the year of £4.3 million – and thus I’d argue is nothing too exciting. This is further demonstrated by the announcement being a non-regulatory RNS Reach rather than a proper RNS.
The prior “Trading update” included a change in Chief Financial Officer (with Mattias Strom resigning “to pursue other business opportunities”) and that “for the second consecutive six month period, the group was cash generative during the first half of 2017”.
This sounds positive – but I note the market cap here is now approaching £13 million and I look forward to reviewing the cash flow detail in the results announcement scheduled for 5th September. For now, I continue to avoid.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |