Have a look at todays news threads for EVS, great first half results, important acquisition announced, more exciting news promised in February. Up 25% so far today.

Nice.......very nice.......


Research Alert Monday 28 February 2005 6th tranche
1 Seymour Pierce Research
*Envesta Telecom plc
Specialist Telephony Supplier BUY
4.1p
AIM EVS.L
New product launch and forecasts
Today Envesta released a new product called Cheaper Call Rate. The
new product should have a significant impact on future revenues and margins
for Envesta.
Cheaper call rate will interface directly with Envestas back office, which will
be directed at the retail market, thus increasing margins and assuring
revenues. The product can also be White Labelled to other companies. The
product allows the customer to enter its usual international or mobile numbers
and in return will be provided with a unique telephone number, which can be
used by anyone from any UK location.
Envesta has agreements with global incumbent wholesale suppliers, which
provide the user with very high call quality, but at a very low cost. The user
makes substantial saving, but does not have to change its supplier, as
minutes used appear on the customers regular bill.
We suspect trading is well ahead of our forecasts and is gathering
momentum. Our revised numbers have been substantially revised to
reflect the performance of Envestas principal subsidiary, Seven Telecom.
Our forecast for the year ending 30June 2005 have been revised upwards
from 0.75m to 1.1m, whilst turnover has been moved from 20m to
23m. 2006 numbers have also been revised upwards. Its re-focus on its
core business, Seven Telecom, has had a dramatic effect on the growth
of the business, with little incremental cost, resulting in gross profit falling
through to the bottom-line.
Envesta is at the early stage of substantial growth. We have moved our
short-term price target to 6p and reiterate our recommendation as a BUY.
Year end Sales Pre-tax Tax rate EPS PER Net div Yield
30 June (000) (000) (%) (p) (x) (p) (%)
2004A 12,364 (254) 0 (0.12) 0 0 0
2005E 23,000 1,100 29 0.34 12.0 0 0
2006E 32,000 2,000 24 0.66 6.2 0 0
Source: Source: Seymour Pierce Limited and Company data
pre-exceptional
*Seymour Pierce Ellis Limited acts as Broker to Envesta Telecom plc
No of shares (m) 229.6
Market cap (m) 9.4
Net cash (m) 0.751
Enterprise value (m) 8.6
(%) 1m 3m 12m
FTA relative +50.3 +115.6 +46.4
12 month high/low (p) 4.35/1.65
Next news
Interims March 2005
Business
Alternative telecoms provider, specialising
in supplying high quality international
connections.
www.envestatelecom.com
Price and price relative (-2y)
ENVESTA TELECOM 28/2/05
M A M J J A S O N D J F M A M J J A S O N D J F
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
PRICE
PRICE REL. TO FTSE ALL SHARE - PRICE INDEX
Sourc e: DATASTREAM
Source : Datastream
Contact
John Beddoe
020 7107 8004
johnbeddoe@seymourpierce.com
Research Alert Monday 28 February 2005 6th tranche
Seymour Pierce Limited
13th Floor
Bucklersbury House
No. 3 Queen Victoria Street
EC4N 8EL
Switchboard: 020 7107 8000
Fax: 020 7107 8102
www.seymourpierce.com
Important Notes
This document has been issued and approved for distribution within the United Kingdom by
Seymour Pierce Limited only to market counterparties and intermediate customers as defined
under the FSA rules. No other person should rely upon this document. The information
contained herein is compiled from a number of sources and is believed to be correct, but cannot
be guaranteed. It is not to be construed as an offer, invitation or solicitation to buy or sell any
securities of any of the companies referred to herein and any opinions expressed are subject to
change without notice. Seymour Pierce Limited and/or its associated companies and ultimate
holding company may from time-to-time provide investment or other services to, or solicit such
business from, any of the companies referred to in this report. In addition, they and/or their
directors and employees and/or any connected persons may have an interest in the securities of
any of the companies in the report and may from time-to-time add to or dispose of such
interests. Seymour Pierce does not meet all of the FSA standards for managing conflicts of
interest, as a result our research should not be regarded as an impartial or objective
assessment of the value or prospects of its subject matter, though of course we will always
ensure that it remains clear, fair and not misleading. Seymour Pierce Limited is authorised and
regulated by the Financial Services Authority, and is a member of the London Stock Exchange.

"Definitely one to watch" thats todays Shares Mag opinion after commenting on this weeks new product launch.

Just checked with Barclays online to find max buy limit has dropped to 37.5K.

magic 5p broken - roll on short term target 6p

Share magazine has re-iterated its BUY recommendation on EVS this week. Great potential. It will go higher

hlyeo98: On a forward PE of only 5, it's hardly surprising. Still cheap as chips!

My prediction is 5.8p by the close and 6.4p on Monday.

Its on a mission - can see it touching 6.5p later today.

It will reach 10p next week

5.88p now. Yippee!

I'm sticking to my prediction of 5.8p at the close and 6.4p on Monday. Good luck!

hello guys, very exciting stock, join in this family @5.56p, wish it is not too late. :-)

swseun: There's a lot more to come.

thanks grevis, wish u hv a very nice weekend!

Thanks swseun. Trust you will enjoy your weekend as well.

Envesta will go higher next week to 6.7p

how could you figure out 6.7p? just interested as I am quite new in stock market and like to know more.

swseun: If you want to see what excitement is being generated by this stock have a look at the BB for EVS on www.advfn.com

thanks grevis, wish we will have a nice rise in the following weeks.

Hi all
New to this one, can't believe I did not get
in before. With a forward p/e around 10
still looks very good value even with the
recent high gains, hope i am not to late.
All the best.

HUSTLER