11th Feb 2021. 8.58am

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AIM Investor Performance – please click to view

Sureserve beating expectations as it doubles dividend

Surserve (SUR) released their preliminary results last week, and they made for pleasant reading…

The compliance and energy services group said that performance in the year to the end of September 2020 was “ahead of expectations”.

While revenue from continuing operations down 7.7% from £212.1m to £195.7m due to the “significant impact from COVID-19”, profit before tax from continuing operations jumped 46% to £7.8m from £5.3m a year earlier.

The statement also indicated that they have started their new financial year in style, covering 77% of FY2020 revenues already with an order book of £355.8m.

Chairman, Bob Holt commented:

“I am delighted with Sureserve’s performance in what has been an extraordinary year…

During 2021 we are focussed on making further gains across both Energy Services and Compliance, particularly given our crucial work in helping the UK reach its commitment to create a net zero carbon economy by 2050…

We have started FY21 strongly and, with 77% of revenues covered by our £355.8m order book, we look forward to the business continuing on this growth trajectory.”

In a clear show of confidence, the board proposed a doubling of the dividend to 1p.

On the price chart, Sureserve’s uptrend is progressing well, characterised by steepening trendlines. Recent price action has seen the shares consolidate near recent highs within a relatively tight range. This high and tight consolidation is a bullish sign and is indicative of trend continuation. Needless to say, we’re happy to hold Sureserve without our AIM Investor portfolio.

SUR Daily Candle Chart

SUR Daily Candle Chart

D4T4 CFO to step down

Big Data firm D4T4 Solutions (D4T4) announced this week that Chief Financial Officer Charlie Irvine is to leave the company to pursue another opportunity outside of the public markets.

The statement said Irvine will leave following a period of three months’ notice, but will remain with the company in the interim for the handover of his responsibilities.

“A search has been initiated for his replacement and further announcements will be made in due course”.

The market was unfazed by the news and the shares have continued to consolidate near their highs.

It’s been very pleasing to see D4T4’s share price spring back to life in recent months, breaking above their 280p 2019 highs with ease at the turn of the year.

The shares have carved out a clear ascending trendline and we will use this as a barometer for the short-term position management.

D4T4 Daily Candle Chart

D4T4 Daily Candle Chart

Spectra kick off second phase of central bank project

Banknote and brand authentication specialists Spectra Systems (SPSY) announced last week that it had started the second phase of a sensor development programme with one of its central bank clients.

The second phase, worth $5.6m, was a follow-on to the $1.9m first phase of development and is yet another example of how Spectra grow revenue throughout its client lifecycle.

CEO Dr Nabil Lawandy commented:

“We are pleased that this technologically sophisticated central bank has provided us with the opportunity to continue to phase 2 of the sensor development which will lead to the production of a yet unspecified number of sensors for their advanced cash processing operations”.

Whilst the shares have been treading water since our entry in the autumn, the integrity of Spectra’s long-term uptrend remains very much intact.

In fact, prices have continued to carve out higher swing lows during the current consolidation phase and this is a bullish sign.

SPSY Daily Candle Chart

SPSY Daily Candle Chart


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