Not that many small caps followed here, but I thought I would share a company I have been tracking recently and in which I have started building a sizeable position relative to my portfolio, on what I believe are great fundamentals, a strong new management and focus of profitable divisions.

Current Trading @30 April 2003:
LONDON (AFX) - Inveresk PLC said trading in the year to date at each of its
mills has been ahead of expectations, adding that it remains confident about the
prospects for both Carrongrove and St Cuthberts as well as for the company as a
whole.
The company also said its open offer has been oversubscribed. It received
applications for the open offer in respect of 33,097,295 shares, representing
101.4 pct of the shares under offer.
Shareholders who applied for shares in excess of their pro rata entitlements
have been scaled back.
In the text of a speech to today's EGM, chief executive Alan Walker said:
"The finalisation of this placing and open offer and the conversion of the
unsecured loans marks the completion of the re-capitalisation and refinancing of
Inveresk.
"The company now has a stronger balance sheet, a supportive bank and a wider
shareholder base including a range of well known institutional investors."

FROM RESULTS ON 7 MAY 2003:
Inveresk announces the completion of its restructuring and refinancing following
a period of weakness in 2002 during which its banking covenants were breached
and its loss making business and certain assets at Caldwells mill were sold to
Klippan AB of Sweden. The continuing niche speciality mills at Carrongrove in
Scotland and St Cuthberts in Somerset have entered 2003 with a clean slate both
being profitable and highly cash generative.

Current Estimates:
Analyst estimates:

Turnover (m) 45.800 49.100
Pre-tax Profit (m) 3.000 4.000
Tax rate (%) 0.000 0.000
Earnings per share (p) 2.40 2.80
Dividends per share (p) 0.00 0.00
Cash Flow per share (p) -5.90 4.10
Net Asset Value (p) 10.20 13.00
Shares (millions) 144.000 144.000
EBIT () 0.000 0.000
EBITDA () 6.20 6.50
Enterprise Value EBIT () 0.000 0.000
Enterprise Value EBITDA () 6.025 5.747
No. of Estimates* 1 1

With a forecast EPS of 2.4p this year, this should be valued at about a PE of 10 given the growth rate and turnaround which gives it a target of 24p.