Was rather bearish on tech stocks up to about a month back, but for sure the markets seem to have weathered the spring and summer storm and are starting to look intertesting again.

Compel Group as a leading market position in short term IT rental and enterprise solutions. Yesterday it released some cracking results which are summarised below.

The Highlights:

Compel returned a strong performance for the year, continuing to
outperform its competitors

Substantial improvements in turnover and profitability

- turnover increased by 20% to 63 million

- operating profit, before exceptionals and goodwill amortisation, improved
by 140% to 1.2 million.

- after exceptionals and goodwill amortisation, Compel returned an operating
loss of 0.5 million (2003: operating loss of 1.5 million).

Markets have stabilised during the year; the decline in IT expenditure
levels has halted and, in some areas, is showing evidence of increases

Two acquisitions during the year, Syscap and Sysao, strengthened the
Group's already leading market positions in short term IT rental and
enterprise solutions

The outlook and prospects for Compel are very good and better than they
have been for several years



CHAIRMAN'S STATEMENT

I am pleased to report on a strong performance by Compel for the year to 30 June
2004.

The Group achieved substantial improvements in turnover, which grew by 20% to
63 million, and operating profitability, which improved by 140% to 1.2
million, before exceptional costs and goodwill amortisation. Operating loss,
after exceptional costs and goodwill amortisation, was 0.5 million (2003: loss
of 1.5 million).

Two acquisitions during the year, Syscap and Sysao, strengthened our already
leading market positions in short term IT rental and enterprise solutions. Both
have been successfully integrated into the Group and are performing to
expectations.

After a number of years of uncertainty, it is encouraging to report that our
markets have stabilised over the last 12 months. The general decline in our
clients' and potential clients' expenditure levels drew to a halt during the
period and, in some areas, we are seeing evidence of increases. Our businesses
do not rely on substantial market growth - they have, as in previous years,
outperformed our competitors and increased their market share - but improving
conditions will clearly be to their benefit and increase their speed of growth.

None of this good progress would have been possible without the consistent
excellence of our employees. They have as always seized the opportunities
available to us with drive, aggression and commitment. On behalf of the Board I
express my thanks for their hard work.

Our markets are now stable and sales momentum is healthy. The increasing
emphasis on value-added solutions and services, coupled with our operational
leverage, gives us scope to target improvements in operating margins. We believe
that the outlook and prospects for Compel are very good and better than they
have been for several years.

Sir Michael Bett
Chairman.

Fundies

Share price is very near its nav per share, the market cap being circa 24.7 million versus NAV at 20 million.

Cash balance is a positive 6.4 million and the company have been generating good cash flow over the last 6 months.

EPS were 3.6p above forecasts of 3.2p

Historic P/E of 22 (low for the tech sector)

Forward forecast P/E of 13 based on EPS of 5.6p.

Conclusion,

You can buy the shares today for around 93p, I like the look of this one and it appears to have a high Beta. Contract wins through the second half and improved trading should move the share price northwards.

Please DYOR

A compelling chart.



cheers Gf.

Profit taking going on after a couple of up days a good time to get in, I have added this morning.

cheers Gf.

GF , stick RM. on your watch list , no position but looking for a breakout.

Dil will, but gives us a bit more.

cheers Gf.

Can't ;-)

Back to compel then, cheap at the price.

cheers GF.

Buys far higher than sells but price slightly down. Next few days should bring rises.

cheers GF.

Could get news in the shares mag and investors chronicle on this one this week.

cheers GF.

Cracking little tech stock this on a low forward P/E of 13 aswell. Well worth a dabble.

cheers Gf.

Nice rise on this one today and please remember this a asset and tech play with NAV per share just short of the market price. Plenty of security built in.

cheers GF.

Moving up again, investors starting to take note of the value in this one.

cheers GF.

Compel giving it some this afternoon , moved up nicely.

cheers GF.

Starting to take off this one, if you dont hold think seriously about it.

cheers GF.

Quiet day today, but should resume going north in the morning.

cheers GF.

Starting to tick up, some nice buying going on.

cheers Gf.

Starting to move up.

cheers GF.

Stats information on Compel CGR.



http://companyresearch.digitallook.com/cgi-bin/digital/security.cgi?username=1038899&ac=7019701&csi=11309

cheers GF.

Moved up nicely today. Over 6 million of cash and cash flow positive generating a nice return inwards.

cheers GF.

Motley fool site as a lot of fans of this one.

Strong sound company.

cheers GF.

Long time no posts here!

I see Shares Mag has recommended CGR as one of its Plays of the Week today. I happen to believe CGR is extremely undervalued on a low P/E and with a 6.3m cash pile on a 31m m/cap - plus huge cash generation each year. Could someone help me out with access to the Shares Mag narrative or the key points please?

Many thanks.