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Revenue Assurance Services - Scottish Power contract

July 2007

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.

  • Epic Code:
  • RAS
  • Price:
  • 151.5p
The shares reached new highs following the results for the year to 31 March, with sales of £14.6m, up 20%. Adjusted pretax profit was £6.3m, a margin of over 40%, with the entire profit falling out as cash. Earnings per share were 10.2p. Net debt after the sales of the ERP division was £8.8m equating to gearing of 25%. A new chapter has clearly begun for RAS following the two acquisitions in the past 18 months, with the business now having become a unique proposition for investors. To recap, RAS' mainstay is consultancy services (60% of sales) for the discovery of unbilled errors for the utility market. Alongside that the group has also added a commercial debt collection agency (15%) and meter point services (2 ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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