A Software company that makes a profit and pays a divi, but only has a P/E of 7.7.

Recent talk that it is trading up in both of its Betting and Leisure Divisions and is churning out its revolutionary FOB machines to Independant Bookmakers.

Heres a recent article taken from the tip sheet TechInvest.

'Very much on target results for the year ended 3oth November, 2002, with excellent progress n revenue growth and margins as well as substantial improvements in both profits and cash flows.
Pre-tax profits, before goodwill amortisation, more than doubled from 4.1m to 9.0m, giving eps of 6.4p (2001 2.9p). Turnover rose only 9% to 61.9m but trading margins soared from 6.3% to 14.1%.
Operating cash flow was very strong, rocketting from 3.1m to 11.1m, leading to a 60% increase in dividend to 2.4p per share.
This provides a very respectable dividend yield of 4%.
Year end cash was 13.2m (12.8p per share).
The Retail Betting division had a very good year. Revenues increased by 29% to 28.8m and the previous year's loss of 0.5m was turned into a profit of 4.96m. Highlight of the year was the 8m plus contract from Ladbrokes for ALBOS, which also attracted a number of other orders.
The two bet capture and settling solutions, Alphabet and Slip Capture system also did well. Rollouts were completed of Alpabet to Stanley Racing, Tote Bookmakers and Done Brothers.
During the year a new range of fixed odds betting terminals were introduced, opening up a potentially significant new market.
These generate high quality graphics offering high winning bets on games of chance. Chief Excecutive Alan Morecambe expects the installed base of over 220 terminals in several of the key retail betting chains to grow quickly. The proportion of revenue from the wider leisure sector is expected to increase "during the next financial year".
The new Darwin retail software solution was released during the year to a very favourable reception. The Division is stated to have started the year with a strong order book.
In view of the lumpy nature and unpredictable timing associated with larger contracts for now the company is guiding analysts to a marginal increase in earnings per share to 6.5p. This could well be raised at the interim stage. The corresponding P/E is 8.7. (now nearer 7).
This combination of low P/E, strong balance sheet and useful dividend yield means the shares are still an attractive buy'. ENDS.

Please do your own research but you will find that you may miss the boat if you dont get in quickly. G

An instituion bought some yesterday late on, have a look on RNS Natham.

good luck. G.

Is this going to break 1?

Alphameric sees significant shortfall
MoneyAM
Alphameric warned its profits for the year to end-November will be 'significantly' below market expectations.

The company said numbers have been dragged down by adverse trading in its Hospitality division.

Although the software company's Leisure division has performed in line with expectations, its Hospitality division, which represents about 25% of its turnover, has been affected by a number of financial failures in its customer base, as well as by customers postponing investment decisions, the company said in a trading update.

However, Hospitality has recently secured new orders for delivery in early 2007 and the company said it is optimistic that customer growth plans will lead to 'a significant improvement in market conditions' for the current year.

Separately, Alphameric said it has signed a joint venture agreement with Racecourse Media Services Ltd to provide a new betting and data channel for licensed betting offices.

Both companies will invest 100,000 initially and Alphameric said it will commit up to a further 6m if required.

Alphameric chief executive Alan Morcombe said: 'We see real opportunity to grow the market share occupied by UK horseracing within bookmaking. We are very excited about this new initiative, which we expect will over time provide substantial revenue and profit streams for the group.'

The stock has been very weak in the past 3 months.The Investment trust managers Aberforth bought some stock this week.
In at 42p

The bad news just keeps on coming here.


Alphameric PLC
21 September 2007

For immediate release 21 September 2007

Alphameric plc
('Alphameric' or the 'Group')

Trading Update

Alphameric, the provider of information and technology solutions to the
Hospitality and Leisure sectors, provides the following statement regarding the
outlook for the financial year ending 30th November 2007 for the Group and
Amalgamated Racing Limited, its joint venture with Racecourse Media Services
Limited.

The decline in the Company's share price over the past few months, media
commentary concerning the activities of Amalgamated Racing Limited and the
toughening trading conditions in the markets served by the Group have combined
to negatively impact the Group's current trading. Whilst the Bookmaking and
Hospitality businesses are together expected to be profitable at the operating
profit level in the current year, the deterioration in trading and the losses
associated with the Amalgamated Racing joint venture means the Directors now
expect to announce a significant loss for the Group in the current financial
year ending 30th November 2007.

The Company intends to explore funding opportunities with certain third parties
and also with its shareholders in the coming weeks. It is anticipated that a
significant element of any such funds will be made available to Amalgamated
Racing Limited to enable it to pursue its stated investment strategy. To date,
Amalgamated Racing Limited has performed in line with our expectations, with
approximately 20% of the available marketplace secured including one of the
larger bookmaking chains.

Alphameric notes the recent press comment regarding Amalgamated Racing Limited
in connection with the ongoing dispute with the major bookmakers.

Alphameric can confirm that proceedings have been commenced against the Company
(and other parties) in connection with this dispute by Bookmakers' Afternoon
Greyhound Services Limited, Coral Racing Limited, Done Bros (Cash Betting)
Limited, Ladbrokes Betting and Gaming Limited and William Hill Organization
Limited.

The Company will be vigorously defending the proceedings and further
announcements will be made in due course.

For further information, please contact:

Alphameric plc
Alan Morcombe, Group Chief Executive 01483 293 971
Mike McLaren, Group Finance Director 01483 293 971

Weber Shandwick Financial
Nick Oborne / Georgia Dempsey 020 7067 0700

Any further thoughts on this one Big Al?

I kept out of this one as I thought it looked too risky! Well done those of you who got in and made a profit today!

Here's hoping for another 60% tomorrow :o)