This month sees preliminary results from two intriguing AIM-traded ventures – Business Direct and Public Recruitment – whose shares trade at levels I find unusual considering the growth prospects both are exhibiting

One for the locker long-term

Business Direct floated at 50p last August, and the shares have only recently started to move north as a few canny punters have latched on to their story. But there is much more to come I'm sure.

Fronted by chief executive and 47.1 per cent shareholder Tim Houstoun, this company develops and operates an intelligent locker distribution system marketed as ParcelXchange.

The product is sold as 'an ATM for parcels', offering field engineers working for blue-chip customers like TNT, Siemens and Exel a safe and secure deposit and collection spot for deliveries, simultaneously bringing revolutionary advances to the tracking and tracing of parcels.

Houstoun tells me British Gas recently completed a successful trial, which might translate into orders, and there's a healthy pipeline of other customers. At the moment, the target market involves field service personnel, yet the system has exciting long-term possibilities for catalogue and internet companies.

At the December year-end, Business Direct had an estate of just under 200 ParcelXchanges, equating to 2,600 lockers, up significantly from the 171 sites and 2,300 lockers possessed at the end of August. These are situated at petrol stations (an estate supply deal has been signed with Texaco) and industrial estates, and Houstoun's eventual target is 700 sites and 10,000 lockers across the UK.

Figures for the half to June revealed losses of £400,000 on a top line £1.9 million, and the year to December just passed will see pre-tax losses of around £1 million. However, this is a long-term play. Numbers in the market for 2005 and 2006 suggest profits of £942,000 rising to £1.5 million, then a further up-tick to £2.1 million by 2007. 'First, we want to get the network out there and profitable, before we start talking about it,' says the CEO.

I believe Business Direct is awash with potential and the 67p shares (giving the group a market cap of £22 million) are well worth a look ahead of this month's figures.

Be patient with PRG

AIM counter Public Recruitment Group (PRG) was one I waxed lyrical about in the October issue, when the shares stood at 145p. The buy and build company, which listed on AIM last March at 136p, has fallen back to 131.5p, giving it a value of £30.5 million. But for me the drop presents a terrific opportunity to buy into the publically funded growth markets of education, healthcare and social work.

Since float PRG, led by recruiting guru Andrew Goodman, has undergone acquisitive and organic transformation, boosting its presence in education and moving into the social care market. PRG's recent trading update assured the City that 2004 results (out this month) would match forecasts. New broker Oriel is eyeing profits of £2 million for 2004 and earnings of 7.2p, rising to £5 million and 15.1p by December 2005. Those figures give prospective multiples of 18.3 and a budget 8.7. I'm confident PRG remains great value.