My 2008 tip is First Artist Corporation, seriously transformed yet trading on a ludicrously low valuation and sure to win fans in the year ahead. Acquisitions have transformed the company from a ‘lumpy’ football agency into a low-risk and strongly cash-generative media, events and entertainment management counter with a broad revenue base, although First Artist remains a ‘sexy’ business with clients ranging from soccer icon Ruud Gullit to dieting guru Gillian McKeith.

Three years ago the bulk of revenues were football based, whereas today almost 90 per cent of sales are wrought from media, non-football entertainment and event management services. Full-year figures to August showed a 400 per cent sales surge to £48.6 million and profits up 80 per cent to £2.7 million, with key 2006 acquisition Dewynters (giving First Artist the dominant role in UK theatre and cinema marketing) driving much of the growth.

Jon Smith, chief executive, is delighted with Dewynters, which offers everything from print and digital marketing to the delivery of programmes and theatre displays. Recent West End work includes Equus and Lord of the Rings, while the agency is tapping into US theatreland via New York and Las Vegas offices. ‘It is proving a fantastic cash cow for us,’ says Smith, adding that ‘Dewynters has proved a fantastic little find and has just had its best year yet.’

For 2008 and 2009, forecasts point to profits of £3.6 million and earnings of 17p (15.7p), ahead of £4 million and 18.6p. Those estimates place the shares on a forward multiple of 5.4, falling to 4.9 next year, which looks ridiculously low given growth rates, cash flow characteristics and First Artist’s new revenue resilience. Buy.