At current price of 4p and 26.2M shares in issue market cap is 1M.
Reports quarterly. Last 9 months show pre-tax profit of 185K on revenues of 7.8M
If Q4 same pro-rata then full year pre-tax profit of 250K. Improved performance mainly due to cost-cutting but Q3 results also show jump in revenues.
Very strong balance sheet relative to market cap:
Cash = 0.76M
Net Current Assets = 1.3M
NTAV = 1.55M
There are 2 divisions of the company.
1) Human resources consultancy and software house. This part contributes approximately 65% of total revenues.
2) Software distribution, support, installation and training. Contributes approx 35% of total revenues.
No pension issues. Negligible potential dilution due to warrants/options.
The directors hold 8%. There are another 5 Israeli-sounding individuals who between them hold approx 50%.
Illiquid and large spread definetly discourages trading. You also cant trade online. The company is Israeli although has subsidiaries in UK and US. As a rough guide 65% of revenues come from Israel, 20% from UK and 15% from US.
The tax charge is shown as 50% in Q3 results. I assume this is exceptional. Since the majority of the business is in Israel then I think it would be reasonable to assume the Israeli tax rate of 36% to be more realistic.
Ive been through the latest set of accounts with a toothcomb and cant find any hidden liabilities or other nasties to account for the very low market cap.
