Updates

Melorio

June 2010

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.

Melorio has received a recommended offer from Pearson Plc, which values it at Â£99.3m or 225p a share. The news came the same day Melorio reported its results for the year to 31 March with sales of Â£58.7m and a pretax profit of Â£13.7m. Given that Melorio has debts of Â£15m, the offer looks a low price. Based on a historic EBITDA of Â£16.5m, it implies an exit multiple of 6.9x and based on a forecast EBITDA (as per the company's announcement) it implies a prospective PE of 4.6x. That of course, is before the Comprehensive Spending Review when the government will probably take a hatchet to funding for the training sector. A fantastic deal for management and for investor Marwyn, who both get to exercise the warrants issued at float ...

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Iomart

Spice Group

Melorio (December 2009)

Melorio - Zenos sees better than expected enrolment in poor jobs market (October 2009)

Melorio (June 2009)

Melorio - 'Trading ahead of expectation' (April 2009)

Melorio - Continued strong demand (March 2009)

Melorio - Moves into ICT sector with acquisition of Zenos (January 2009)

Melorio (December 2008)

Melorio (October 2008)

Melorio - Forecasts lifted again (April 2008)

Melorio (February 2008)

Melorio - Construction training remaining buoyant (January 2008)

Melorio - Consolidator in vocational training (November 2007)

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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