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Kewill Systems - Tech sector showing recovery

July 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Kewill returned to profitability in the year to 31 March. Turnover was up 2% to £22.1m (8% in constant currency terms) including a three month contribution from Tradepoint.  The US accounts for almost two thirds of sales and 90% of operating profit so given the exchange-rate movements in the period, this is a very strong underlying result and suggests organic growth in the US business.  Profit before tax was £1.5m compared to a restated loss of £6.1m last year.  Earnings  were 2.7p.  Cash was dented by the outflow of £6.1m relating to the acquisition of Tradepoint in January,  but Kewill/Tradepoint are both cash generative and Kewill ended with cash of £19.1m. The ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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