Vanco plc - Contract win

In my post No 71 the concensus eps for this stock was 5.47p for the year - it has been upgraded a bit since, concensus now 5.56p

Having done 0.71p eps in H1 then H2 eps should easily be 4.85p. Seeing the company says it is "Very Confident of meeting market expectations" then 4.85p eps in H2 looks well on the cards. That'ts a 4.1p+ improvement over H1. If that momentum is maintained we'll see 8p in H1 next year and 12p in H2 = 20p for the year. Now I would't suggest they will do that but bearing in mind their confidence and this momentum it does suggest that the eps estimate for next year of 11.26p may be on the low side, given the recent large contract gains too.

15p eps next year looks very possible, putting this stock on a PE of 20 and earnings growth of 170%. A genuinely high growth, profitable technology company that may be trading on a PE well below that currently seen in the sector and delivering profits rather than hope imo.

Of course if they are "Very Confident of meeting market expectations" it might be fair to assume they could beat expectations this year by a decent margin. Looks an exciting one to me, still potential to double come the results I'd say.

CR