Posted by The Big Fella on ADVFN


Time this was brought to a wider audience. This is as cheap as it gets. Above predictions based on 3 mil net profit for 2006.

Disperse Group (formerly on OFEX as Disperse Technologies)

Take a look at the 16 months results:

Net profit 123K

What we can add in for next year:

Cost of delays in delivery of products (problems resolved) 1.2 mil
Restructuring costs (on off exceptional item) 874K
Ongoing cost saving from restructuring 750K

Total 2.947 mil

What else do we know:

Massive increase in turnover from 2.8 mil to 24.1 mil (slightly different accounting period plus acquisition driven). However with their stated intention to "Driving the business to achieve significant gross margin improvements during 2006 and 2007." This could have the effect of adding 5 - 8% to the bottom line. With no growth you would be talking another 1.2 / 1.5 mil.

In saying that growth is likely to continue. They have a new management team that will only just be bedding down. I would expect a positive effect to the bottom line, although difficult to quantify. Secondly they have stated new product lines with will increase revenue being released 2nd qtr 06.

My conclusion is you could make a reasonable case for in excess of 4 mil net profit in 2006. Current market cap is 11mil. Even if they only make a million they wouldn't be overly expensive considering the growth. From what they have said they will do 3 mil almost as a given.

Tipped as a buy in Shares Mag thurs 13apr

Download annual report http://www.disperseplc.com/archive/preliminary2005.pdf

Time we heard from the Company, today's fall of nearly 5% is on top of earlier falls, it's just holding onto double figures (mid)....so I guess someone knows more than I do at present.
As for massive turnover, I agrree it was "bought" with shareholder funding a Rights issue - something about 18p I believe, so today we're close to a loss of 50%
- that does need some explanation.

It is possible they are attempting to market new products and this has dented exising sales...who knows?
The company is surprisingly silent; this falling ...needs some comment IMHO.