Jarvis Investment Management on AIM soon - a little gem

Just received a letter from Andrew Grant about the proposed move to AIM.

Some interesting points.

1. Jarvis has recently announcd a second interim dividend of 2.25p then the interesting bit (total of 4p for the year to date).

2. Move to AIM is mid December (plan) - accounts being audited to 30-9-04 so this can be achieved

3. Profits 2004E £.80m p/e 17.0, 2005E £1.2m p/e 11.4

4. Dividend forecast of 5.2p 2005

5. Daily trades average 350 peak 550.

6. Employees 22 spare capacity 3 times current levels

7. JSP may get bought before it has time to capitalise on opportunities

8. Management will still hold 70%+ of the business (adjusted)

9. Like businesses trade on a p/e of 10-15.


So they are obviously moving to AIM for a reason. I'd expect a number of deals are lined up and the management team will be strenghtened. That's what I would do and they have the money.
The spare capacity needs to be filled and then the p/e will drop dramatically and the share price will therefore rise to reflect this.

Some fun times ahead if they can pull in the deals.

Clever bit would be to use JSP paper for the juicy ones.