Mötley fool today13 Nov 2014 11:56
Ideagen
NHS information management provider Ideagen’s (LSE: IDEA) acquisition-based approach to growth rather than through in-house R&D is clearly paying dividends, allowing the firm to benefit from an established client base and allowing terrific cross-selling possibilities. And Ideagen has plenty of cash in reserve to keep this lucrative strategy ticking along.
The City’s number crunchers expect Ideagen to continue punching out meaty medium-term earnings growth, with a rise of 14% for the year concluding April 2015 expected to be followed with an extra 15% advance in the following 12 month period.
Although arguably not as jaw dropping as the others mentioned on this page in the value stakes — Ideagen carries P/E ratings of 18.5 and 16.1 for 2015 and 2016 correspondingly — the business still smashes a forward average of 19.6 for the complete software and computer services sector.