Updates

Iomart - Another SCSW ten-bagger in the making

October 2013

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.

Following on from its two deals last September, Iomart has paid Â£6.6m for Redstation, which adds two data centres. It has also bought Backup Technology, a supplier of cloud data backup and disaster recovery services, for Â£23m. Each business has sales of Â£5.2m with an operating profit of Â£2.4m, so equating to a maximum multiple of 3.4x for Redstation and 9.8x for Backup (against Iomart's own multiple of 19x). Net debt post the deals is Â£26m.A Nap buy at just 44.5p back in January '10, they look sure to become a 10-bagger in time but we wouldn't dissuade you from locking in profits - the directors have just sold Â£11.8m shares at 290p. ...

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Dunelm

RWS - Unblemished 10 year record of growth

Iomart (September 2012)

Iomart (December 2011)

Iomart (October 2011)

Iomart - Very eps enhancing acquisition (December 2010)

Iomart (October 2010)

Iomart (June 2010)

Iomart - Winning 15-20 new hosting customers a month (April 2010)

Iomart - High operational gearing and moves into profit (December 2009)

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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