My next is BILL and UCL together. Billing Services Group is an American company which floated on the AIM market about six months ago at 75p. Although the price has hit above 100p since it is now trading at 87p with a little uncertainty surrounding a deal to buy UCL. This I understand is a done deal and I feel that once it is sorted then the share price will begin to rise. In the meantime a purchase of UCL shares may be an even cheaper way in as once they are taken over the shares will be converted to BILL shares and, at present, the UCL price implies BILL trading at around 79p.
EVBG the brokers have a short-term target of 145p (back on Sept 30th) and I believe that the acquisition of UCL followed by a prompt move to the main LSE market (a stated intention of the company) will give this share momentum. At £250m it will be one of the larger small caps and if it reaches the EVBG target could be catapulted into the FTSE350.
BILL has important contacts in the US and with some large companies such as T-Mobile in this country. At present forecasts BILL is trading on a PE of just over 8 with growth of over 70% (thus a PEG of 0.11).
The outlook is strong and in the recent interims it was reported that:
'Current trading in BSG's existing core US wireline business remains strong and is currently ahead of management's expectations at the time of BSG's admission to trading on AIM. EDS IOS's [a recent acquisition] most recent management accounts show that EDS IOS is trading in line with its management's expectations.'
