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Staffware - Expects to announce record results

February 2003

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.

Software business, Staffware, is a worldbeater with a leadership position in workflow software. It has already announced that it expects to report its best ever year for revenues and profits when it reports results for 2002 on 25 February. But the shares trade at just 315p, to value the business, which has cash of £20m, at just £45m. Splitting out the cash, the enterprise value is just £25m (60 per cent of turnover) and Staffware is profitable. We visited the company at the Maidenhead headquarters last month but with the company in its closed period were not able to touch on the financials. Is Staffware an easily understandable business? Not really is the answer. At its simplest, the story is of software to enabl ...

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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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