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[pugugly] 02/2/2010 17:17

dosser:> Thanks

[dosser2] 02/2/2010 16:53

Tips .com, you must pay for its services.

[dalstal] 02/2/2010 16:52

dosser - you know who tipped it?

[pugugly] 02/2/2010 16:51

DOSSER2:> Can you say where ?

[dosser2] 02/2/2010 16:24

Just tipped, hence the rise.

[greengiant] 21/12/2009 11:00

I have been having a look at Clarity and below is my honest view - I do not hold but may take up a position.

The profit and the forecast....

The current market consensus for 2010 is for a EBIT of £1.8m. During the first half of the year, the company managed a profit of £426k, after amortising £203k off goodwill and incurring a depreciation charge of £41k. So summary for H1 is as follows

EBIT - £426k
EBITDA - £670k

In order for the company to achieve its target £1.8m EBIT for the year, the company needs to achieve a profit level of £1,374k. Difficult, although H2 typically sales tends to be stronger than H1 (prior year around 16% higher) and GM% tends to be around 1% higher (although GM% dropped 2% H1 v H1). Also Assuming that Admin costs stay relatively fixed fro H1 to H2 despite the increase in turnover.

Sales of £10m for H2 with an 80% GM and flat Admin costs leads to a FY EBIT of £1,822k. Consider the company did £9.6m the prior year imho, £10m + is achievable. However, more likely, we will see admin costs rising to around £6.8m (historicaaly they do rise with sales increase). This would mean that in order to achieve the £1.8m, the company needs about £10.4m - very possible.

Balance sheet and cash flow

During H1, the company had an adverse movement in cash to the tune of £200k, the vast majority of which was a reduction in Trade Creditors of £894k. This tends to be a historical trend (prior year and prior year +2 - with PY + 1 being an exception). This trend always reverses in H2 leading for a big upswing in cash reserves for the FY). So I would anticipate a cash inflow of around £1.4m - £1.6m for H2, resulting to increased cash balances of around £1m - £1.2m for the full year.

Balance sheet looks good and net debt eliminated and def consideration paid with the share placing.

Current expectations are for around 4p EPS which if achieved would lead the company to be on a PE of jusy over 8. Next years EPS of around 5.3p will put the company on a forward PE of a smidge over 6.

With the positive cash generation and my anticipated cash balances going forward doesn't makes this a raving buy, but certainly makes this interesting. I may wait until the company achieves the current years forecast before buying

Good luck all

gg

[linhur] 23/11/2009 18:54

It would have been helpful to have heard that some contracts had been won today.The financial position is good as the bank overdaft has been eliminated, but they seem to losing momentum in sales.They have to work very hard to reach the brokers forecast of £1.8m for the full year.

[investinggarden] 23/11/2009 17:21

Interim turnaround at Clarity Commerce

[linhur] 25/9/2009 21:38

Important week for Clarity coming up.Decision has to be made whether to pay the third tranche of the Matra deferred consideration in cash or shares or loan stock.It will be interesting to see!
It looks as though the Herald Trust buy might have been mopping up the ex chairman's stake although the continuing sale drips might be inspired from the US if Matra are given shares - lower price equals more shares.
Disappointing not to see more announcements of contract wins. Perhaps they are being stored up. The depreciation in $/£ rate would be bullish for Clarity.
regards
linhur

[bowlersam] 09/9/2009 12:49

Last Interims were 20-11-08 ... Stay tuned !

[gconvery] 08/9/2009 22:35

When are they??

[this_is_me] 08/9/2009 19:50

Will we get another jump in the share price in th4e run up to the interims?

[this_is_me] 25/8/2009 17:33

The market cap. is £16 m. Last year's profit was £0.47 million, this year's is forecast £1.79million and next year's £2.54 million. I call that stuning growth.

[smarm] 24/8/2009 15:46

this_is_me - on what basis do you draw that conclusion?

S

[this_is_me] 13/8/2009 17:23

The reason is that it is way undervalued.

[smarm] 13/8/2009 12:48

Moving nicely now. Anyone know why?

S

[gconvery] 13/7/2009 11:11

At this rate we really will it 60p before a major breather!

[this_is_me] 10/7/2009 19:39

That was dated 22nd June so it doesn't explain the rise.

[investinggarden] 10/7/2009 15:01

Buy recommendation from Growth Company Investor

[this_is_me] 09/7/2009 18:00

The interesting thing is that this has happened without any hype or indeed much interest on the BB. What are the odds of an RNS in the morning?

[gconvery] 09/7/2009 16:43

Interesting that the rise seems to be mirroring the fall....maybe my 60p target is not so wrong!

[gconvery] 09/7/2009 15:17

Hmm, I wil be ready to sell if it hits my stoploss. But like the story....

[niggle] 09/7/2009 13:46

and I quote "it may prove difficult to buy at the right price" it goes on to explain that the shares are tightly held and there is only one broker. Bit of a bear squeeze so just pray they don't come down as quickly.

Cracking company but in the short term overpriced.

[gconvery] 09/7/2009 12:20

Nice and quiet here but 15% up..... ;-)

[gconvery] 09/7/2009 09:35

And the march continues!