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Greatfleet
Greatfleet is an AiM listed holding company for businesses operating in niche areas of the recruitment sector. Its markets are for ‘professional’ staff i.e. in legal, audit, compliance, IT and banking.
Bases established for turnaround
Historic problems addressed: Group rationalised and debt cleared
Intrinsic strength in the key operating brands
Risk/reward dynamic appears attractive: medium term 50p per share looks achievable (twice current levels)
Results : caution on banking
Satisfactory numbers outweighed by caution re credit-squeeze impact
Progress in strengthening balance sheet during H1
Acquisition of Qualitas post period looks a good fit
Downgraded forecasts leave stock on 9.5x PER for full year 2007
2006 results; back in profit, refocused and in a strong market
- Peripheral businesses removed
- Balance sheet improving
- Still lowly rated
Greatfleet: 'Recovery to Growth'
- impact of new management
- organic & acquisition growth forecast
- low earnings multiple
