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ICM Computer Services - Opens 10th disaster recovery centre

August 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

ICM has expanded its network of business continuity centres with the opening of the tenth unit in Bristol, the first in the South West. The site has 400 seats and takes the total to over 2,700.  Brewin Dolphin has since initiated coverage. The broker points out that based on selling each seat a theoretical 25x (at £250-£300 per seat), the existing network is capable of generating revenues of over £20m, with a further £20m coming from cross-selling other services. This compares to the division's sales of £12.8m this year. Sites breakeven at a very low 25% utilisation after two years so earnings are currently being penalised by the hectic pace of recent openings. That said, improving utilisation should ad ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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