Gladstone is a company which has recently become cash generative and is experiencing a turnaround in its buisness. Following a board change the group has turned the corner in securing future profitablility and is on track to report profit ahead of expectations within the next few months. Currently valued just over 5mil this stock is need of a re-rating and seems to have been exempt from the recent rallys.

Excerpts from Full year:

"Gladstone has made a full year profit after tax for the first time of 184k (last year loss 1,676k).

- Earnings per share before goodwill and exceptional items has risen to 1.53p (last year loss 1.50p).

- The quality of earnings has improved. Software support contracts and rentals now represent 37% of turnover (last year 31%).

- Ongoing investment in our core product MRM.plus2 continues to position us ahead of our competition."

"Our MRM trading division is performing in line with management expectations. We raised 260k by an equity placing in September 2003 and will continue to use
this cost efficient route to raise funds for expansion when appropriate. We are
continually looking for the right international opportunities and are exploring
the use of overseas distributors. Holmes Place, one of our private sector
clients, recently decided to upgrade to our central database solution and will
be using our software across 5 European countries. We have good reason to be
optimistic about the future."


Chart:




Full year:

http://moneyam.uk-wire.com/cgi-bin/articles/200312231436156124T.html

Lucky I held onto to mine...Lets hope next week will take them well over 20p.

i understand the brokers say true value is about 22p