Vin Murria, chief executive of fast growing Computer Software Group, announced today that her acquisitive firm had completed yet another deal, buying AIM Group, a software venture operating primarily in the legal sector, for £5.3 million cash.

AIM Group is loss making and, as Murria mentions, sold one of its profitable business units after delivering a loss of £107,000 in the year to April 2005. However, Murria claims that the business which was sold 'was focused on the retail sector, an area we don't want to be in. And, while it is in the red at present, that will change. AIM Group just needs a bit of focus. Within a short space of time I am confident that it will be making a significant contribution'

This is the second acquisition from Computer Software Group in the last eight weeks. Back in March, it bought Care Business Solutions (CBS), a marginally unprofitable software group operating in the not for profit sector. The asking price for CBS - which sported annual revenues of £2.65 million – was £2.8 million cash. 'We are paying cash when we takeover ventures because we don't want to dilute shareholders, debt is cheap and our cash flow is strong'.

Neither of these purchases are likely to affect full year results (for the year to February) released this month. These are likely to show a fivefold leap in profits to somewhere north of £5 million. If the existing business continues to grow and decent cost savings are wrought from the new additions, 2006 could prove to be another record year. Excluding the above businesses, the market is expecting profits of around £7.3 million

Computer Software's shares have soared this year to 86.5p, valuing the company at £49 million. This is still not expensive, especially when you consider that the group has grown sales from almost nothing to £38 million in little over three years. It hopes to break through the £50 million sales barrier in a short space of time.

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