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RC Group - Forecasts upgraded

October 2006

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:
  • RCG
  • Price:
  • 66p
The shares opened up 10% higher after it announced its results for H1 to 30 June. Revenues were £22.6m, astonishingly almost 50% higher compared to the whole of last year. Pretax profit was £6.4m and earnings per share were up 179% to 3.9p. A large chunk of the growth came from four acquisitions which have given the group a strong presence in Southeast Asia and this will be further enhanced by openings of an office in Dubai and Beijing later this year and the appointment of Digital China as an exclusive distributor for the PRC market (though this was post the period end). The acquired businesses have been bought for their distribution capability and over time will start to sell RC products. Due to the change in sales ...

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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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