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.

Looks ready for a tick up.

cheers GF.

Some excelent news through.

SMC Group Plc

Formation of New Division to Target Education Sector 'SMC Education & Community'


SMC Group Plc ('SMC'), one of the UK's leading groups of architects and designers, has announced the formation of a new division specifically designed to service the Building Schools for the Future (BSF) programme to which the Government has committed a spend of circa #60bn over 10 to 15 years in upgrading and replacing secondary schools throughout England.


The new SMC division, called "SMC Education & Community" (SMCE&C) recognises the importance of consultation processes and local knowledge, in addition to design and innovation skills, in its contribution to the success of the BSF programme. The division will therefore contain leading Communities Liaison Officers and educationalists, working in harmony with SMC's Architects and Designers with their established office networks throughout the country.


SMC Education & Community will be Chaired by Warwick based Robert Gisby (SMC Corstorphine & Wright) who has had a long career in local government and has recently designed many high profile schools, including Stratford Upon Avon High School. Chief Executive will be Manchester based Andrew Rae (SMC DTR:UK) working with Managing Director Steve Wass (Leeds based SMC Gower Architects). Each of these SMC Group companies is already assisting contractor and facilities management led consortia in the bidding process for batches of BSF schools in various cities in England.


SMCE&C CEO, Andrew Rae commented, "This is an initiative on behalf of the SMC Group to proactively assist the contractor and facilities teams with their bidding process as we are only too aware of the importance of community and local issues relating to educational development. Consultations with communities, school governing bodies and pupils have all become essential ingredients in the BSF programme and will drive success for school development in future".


Chairman of the new division, Robert Gisby commented, "One of the fascinating aspects of new schools in the community has been the advent of mixed-use development activity. On several schemes we are already driving the integration of residential and leisure development as part of the overall school sites, for which our own wide ranging market sector skills are ideal".


The new division was formally announced by SMC Group Plc Chief Executive, Stewart McColl, at an annual networking function, PERP, held in the House of Lords on Thursday 15th December 2005. He told an 80-strong audience of contractors, architects and developers that SMC Education & Community was ideally placed to win BSF bids and therefore was actively aligning itself alongside the various bidding consortia rather than simply awaiting approaches from consortia.

cheers GF.

Back over a quid where they belong !!

capa

Spot on Capa, and Im looking for a good one next year.

cheers GF.

Moving up nicely on some good volume.

cheers GF.

Breakout today goldfinger

glad I am here to witness it, 5000 mm buy suggests a lack of stock

lovely jubbly

capa

Yup looks like we could be in for an exciting afternoon.

cheers GF.

I thought yesterdays rise may have been a knock on effect from the trading statement put out by WHY, but volume today suggests otherwise.

The price has now doubled since my initial purchase :-)

capa

And its really pile'ing the Ps on this afternoon. NICE.

cheers GF.

A 50,000 and 47,500 T trades showing today.

More director buying perhaps ?

Looking very strong today

capa

Added a few more of these at 116p this morning. I expect a robust last week in December and also the same in the first week of january.

cheers GF.

I expect you to be right

all the best

capa

Looks to be a sure fire winner for 2006.

cheers GF.

Should be a cracking 2006 for this one. Just watch it go.

cheers GF.

Agreed goldfinger, and a good start to the year today

all the best

capa

Suprised we havent got more in this one. Still derd cheap on forward earnings estimates.

cheers GF.

Im told by a reliable source, news on the acquisition front not far away.

cheers GF.

Not much movement in these over the last few days but its still very cheap and further acquisitions should push the SP upwards.

Heres the house brokers forecasts............

Forecasts
Year Ending
31-Dec-05 Sales 13.34 Pre Tax 2.97 EPS 7.18p P/E 15.5 Growth n/a
31-Dec-06 Sales 20.95 Pre Tax 5.00 EPS10.08p P/E 11.1 Growth+40%

cheers GF.

BUY BUY BUY, before it really takes off. Remember a moving P/E of only just under 11, derd cheap for a company so well run as this one.

cheers GF.

Nice to see this one move up this afternoon.

cheers GF.