Strong balance sheet20 Feb 2009 11:05
Seymour Pierce issued a 'buy' note on trading systems and risk management technology specialist Patsystems (PTS), saying the strong balance sheet underpins the management’s newly sharpened acquisition rhetoric. "Trading Systems has proven relatively resilient in tough markets and Risk Informer, on the back of recent deals, is emerging as an industry standard with a strong growth outlook," commented the broker. With net cash currently standing at more than 8 million pounds, the broker said it is understandable that the management is placing more emphasis on identifying earnings-enhancing, bolt-on deals to increase returns for shareholders. "Recurring revenue is c.90% of the total, cash flow is demonstrably strong and the directors are buying shares," seymour Pierce added. The Broker has a 29p price target,