Melorio are in exactly the right sector, education and offer training to industry, with the government pledge of 4.3bn to train to gain by 2010/11. With legislation to re-train staff going into overdrive, Melorio are well placed to take advantage of this madness.

When you look at the re-rating of Education Development Int, you can see that Melorio have further to go in there own re-rating.

MLO are on a current pe of 8.2, and a per for 2010 of 5.8 and 2011 of 4.9, debt level are at 15.7m now after the acquisition of Zenos in November. However the cash generation is very strong and I would expect this to be paid down quickly, now that they focus on organic growth.

AGM is today, so we should see a statement later, when I see this I will post it here.

See below a write up in Growth Company Investor from May, a little out of date but still good background info................

Vocational training specialist Melorio more than tripled earnings in the year to March, as acquisitions bedded in and organic growth continued.

Beginning AIM life as a cash shell in 2007, the company has since bought and built a business concentrating on three market verticals: construction and infrastructure (56% of revenue), ICT and business services (36%) and logistics and supply chain (8%). Training requirements from each are expected to remain strong, buttressed by government backing.

Melorios first purchase was Construction Learning World, acquired in October 2007 and then expanded with the addition of apprenticeships specialist HB Group a year later. Despite tough times in the construction sector, this division continues to grow and add to its qualifications range (with subjects including quarrying and road-building) to reflect changing industry requirements.

Meanwhile, the ICT and business services operation is built around Decembers Zenos acquisition, a company which has lately seen a better-than-expected intake of students to its 17 academies and which grew pro-forma revenues by 40% last year. Growing organically and offering a strong platform for growth, the start-up logistics division has swiftly secured relationships with over 200 employers.

Combined, these three arms produced 31.4m of sales for the group last year, from which Melorio made 8.8m of profits before tax and exceptionals. Generating strong levels of cash, Melorio managed to reduce acquisition-related debt to a manageable 14.4m.

Although concerns about the construction industry may have held back the shares, news that demand has been maintained and trading since year-end continues to be strong are reassuring. Trading on less than six times forecast earnings of 22.1p, the shares are well worth buying.

Chart looking weak with price at 120p support, guess it could be profit taking, because if anything had changed, I think they would have given a statement at last weeks AGM.