Supply chain software developer and SAP reseller Chelford moved into profit for the six months to 30 June, generating a £135,000 surplus pre-tax (against a £623,000 loss for H1 2003) on sales increased 30% to £5.6m. Encouragingly, strong progress was made at both of Chelford's divisions. SSI, seller of supply chain software to mid-sized corporate customers, grew sales 8% and improved cash generation levels during the period. The SAP reseller business, acquired in December 2002, meanwhile moved into profit after doubling revenue to around £2m. With the supply chain sector still highly fragmented and major retailers increasingly insistent that their suppliers develop strong internal management systems, chief executive Trevor Lewis reckons the sector is ripe for consolidation. '[We are looking] to acquire companies with good organic growth potential,' he notes, elaborating that management would be strongly drawn to businesses offering either 'a strong customer base, complementary products or access to new markets'. £1.7m sits in the bank to finance such deals and Lewis hints that Chelford is also keen to bring in institutional investors as and when the opportunity arises. For the full year, house broker Arbuthnot forecasts a £1m profit before tax and goodwill on sales of £11m. Currently valued at around 12.3 times prospective earnings, the shares are relatively inexpensive for the sector.