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Bond International Software

Companies: BDI   
06/09/2004

Revitalised recruitment and human resources software play Bond powered home with excellent interims to June, as UK and US markets improved. Pre-tax profits leapt 359% to £711,000 on a 26% sales jump to £4.24m, with sales rising across the board in the UK and Europe, North America, Australia and Asia. Organic sales growth was strong, with sales of Bond's market leading Adapt software surging 16% to £3.8m. The March acquisition of EZaccess, a competitor that strengthened the group's customer base in Europe and built up recurring revenues, contributed the rest. To finance the EZaccess deal, which chief executive Steve Russell called a 'raging success', Bond raised £4m, swelling cash balances and leaving Russell the option of future acquisitions. Encouragingly, Bond's UK and European markets are coming back strongly - Russell recently snared a deal supplying Adapt to Spring Group, the biggest UK contract signed by Bond in nearly three years. And the UK order book is up 50% compared with a year ago. North America remains ultra-competitive, but boasts the best growth prospects. Russell has managed to bring the US operation into profits following 9/11 and recently bagged a £506,000 deal with staffing services outfit EmployBridge. For the full year, house broker Seymour Pierce has upgraded profits of £1.4m to £1.7m on £8.9m sales - forecast earnings of 5.3p a share place Bond's shares on an undemanding forward p/e of 13.3 with good forward visibility. Strong buy.

Market cap: £9.22m
PE Forecast: 13.3
Share price: 70.5p

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