In line with my thoughts of recent, stay well away from momentum stocks at the moment. Go into boring but stocks that can be seen to generate an increase in earnings. Ive been with this a few weeks and think a few may have picked up on that. Now breaking out and looking for further earnings enhancing Acquisitions.

Its a top notch architect company and not over exposed to the housing market. Has top management and is derd cheap on fundies, more to come on that . Any views appreciated, good or bad but I feel we could be onto a winner here.

Just look at this report from a tip sheet, all things checked out and OK........

Lifted this from another board..........

SMC stacks up - STRONG BUY
Companies: SMC
27/09/2005

Architecture and design group SMC, which works on major office, retail and residential projects in the UK, Eire and Europe, joined AIM via a 4.6 million placing in June with ambitions to consolidate this fragmented industry. Founder and chief executive Stewart McColl hopes that by creating a larger outfit, his company will be able to win bigger projects producing higher margins.

McColl founded SMC in 1996 and has delivered appetising organic growth in recent years by offering national coverage. This has allowed the group access to substantial and more profitable construction projects across a range of sectors and locations. Clients now include British Land, Canary Wharf Group, Morgan Stanley and Wm Morrison, amongst others.

We have already got the 100 million projects, explains McColl, but there is another step-change in scale to come that will allow us access to projects worth 200 million, 300 million, 400 million and even 500 million. Increased scale pays off because larger projects are higher margin, with higher fee levels and longer timescales, helping SMC plan staff requirements more accurately.

Last November, ahead of the AIM float, SMC appointed ex-Wembley stalwart Sir Rodney Walker, who has brought recent AIM success stories like Goals Soccer Centres and Spice Holdings to market, as non-executive chairman. His presence and contacts have boosted the groups cachet and, following the AIM listing, McColl is also keen to boost scale through acquisitions.

Shortly after the float, SMC completed the two acquisitions mooted in the prospectus Corstorphine & Wright Hills Erwin, a Manchester
and Lancaster-based commercial architecture specialist, and Philip Lees & Associates, an outfit based in Leeds city centre, with a bumper proportion of revenues wrought from repeat business.

We are one of the few consolidators that I know of in this market, adds McColl, and now that we are on AIM, we are after acquisitions that are far more significant in size.

SMC recently cheered followers with an update on new deals. Among a plethora of 100 million-plus projects was work on new headquarters for Deeley Properties in Coventry, Sports Centres for Warwick County Council as well as developments for Pillar Properties and Canary Wharf.

Overseas work included manufacturing and office units in Slovenia, as well as a 290-bed InterContinental Hotel in Pakistan. There was also news of planning consent for a 50 million British Land office campus at Coventry.

2004 was exceedingly strong for SMC, with turnover lifted by 43 per cent to 8.1 million and pre-tax profits sparking up from 100,000 to 1.1 million. Gross margins were a healthy 50 per cent.

More recently, SMC unveiled extremely strong maiden interims to June, sending the shares sharply higher to 70.5p. These revealed a 255 per cent profits jump to 1.1 million on a 47 per cent leap in sales to 5.4 million. McColl was particularly pleased with the 260 per cent vault in earnings per share and a 140 per cent surge at the EBITDA level to 1.45 million, especially since we only had 20 days worth of revenues from the two acquisitions completed at float in the numbers.

He says subsidiaries are already enjoying larger scale project wins as part of the larger AIM group. 'We are looking at a few businesses that we might acquire, and as the business grows bigger, we'll be more equipped to handle PPP and PFI projects'.

Analysts envisage further profits improvement this year to 2.9 million, with sales climbing to 12.8 million. On those numbers, earnings of 7.1p leave the stock trading on an undemanding multiple of 9.9. We believe SMC offers high earnings visibility as well as tasty levels of repeat business, and we are strong buyers.ENDS.

Worth doing your own research if you are interested.


DYOR

cheers GF.

Yes - onwards and upwards - interesting reading your original post - exactly why I got in in the first place - had made some serious wonga with DFD / COH / HVX and just fancied a bit more of a steady eddie in the portfolio - merry christmas - i hope!!!

I'm still holding these, cannot see that they can get away without a placing but earnings enhancing acquisitions and pretty cheap at that.

I like Hardmans fair value price.

capa

Nice to hear from you again Capa.

Great to see you in here.

I hope your going to be around a lot more going up to xmas.

cheers GF.

Cheers goldfinger,

Over the last couple of months I have done a bit of tidying up of my portfolio and have basically 8 long term holds which I add to on any weakness. SMC is obviously one of them, RNWH another, which I believe you also hold, so may see you on that thread in the next few weeks or so.

capa

Looks like someones picked a few up early on - a nice 5p tick up

Cheers capa yes indeed I still hold Rnwh.

SMC motoring away again as you say AM.

smc on the rise again - after that broker note this boy detects some more institutional interest / or a substantial purchase order - the MM's are reacting quickly to purchases and clicking up and down on small orders. A nice rise early today, and I detect some strucutred buying going on - a 50,000 sale just gone through - follow the buys!!!!! IMHO of course

AM

Going great guns.

Hi all, is there a target price for SMC? Looks like it is not too late to join in... any commend is greatly appreciated!!! swseun

SWSEUN - read goldfinder's post above - makes good reading - broker target value / price 2.39 - good luck AM

sORRY - THAT SHOULD HAVE READ 2.30 AM

Thanks Augustman :-)

SMC up another 3p - we have now nearly reached the original target price of 1.79 placed on the business prior to the latest acquisitions by Numis Securities. This should continue to tick up nicely until Christmas - hopefully with some more snippets of positive contract news - dont expect flood gates though - next financials should start to drift through Dec / early Jan i reckon - time to top up is now IMHO - DYOR

Augustman

2.39 here we come.

The sector is bouyant if not positively buzzing, for confirmation see trading update by AUK this morning.

capa

Yes things are looking brilliant in this area Capa.

Rumour of the day in the Times today, states that there is rumour of a 6m placing being undertaken at 1.60.

As previously posted I reckoned on this, if the rumour and price is correct then that is great news in my opinion.

capa

Good news indeed Capa at that price.

SMC Group Plc
19 October 2006



SMC Group Plc

Stage payment in respect of acquisition of DTR:UK Ltd


SMC Group Plc, ('SMC' or the 'Company'), the AIM-listed leading group of
architects and designers, announces the payment of the next stage of
consideration in respect of the acquisition of DTR:UK Ltd, announced on
28 October 2005.

The Company has issued 291,436 new ordinary shares of 0.5 pence each at a price
of 160.33 pence per share, being the average closing share price for 27, 28 and
29th September 2006. The Company has also issued loan notes totalling
467,259. The consideration was calculated with reference to DTR:UK's third
quarter 2006 performance.

Application has been made for the New Ordinary Shares to be admitted to AIM.
It is expected that dealings in the New Ordinary Shares will commence on
20 October 2006.

- ends-


For further information please contact:

SMC Group Plc Tel: 44 (0) 20 7495 5335
Stewart McColl

Numis Corporation Plc Tel: 44 (0) 20 7776 1500
Michael Rowan

Bell Pottinger Corporate & Financial Tel: 44 (0) 20 7861 3232
David Rydell/Chris Hamilton

Back in the blue after a quiet few days.