Being in the right place, at the right time, is certainly not the easiest of feats to achieve. However, for AIM-listed Accumuli, a company focused on combating cyber threats and the subsequent theft of data, it may well have achieved this goal.
The shares have performed well since I first took a look just over a year back at 10.5p, and since then there has been a raft of news and progress, which has seen the share price more than double to a current 23p.
While it may be tempting to assume that after a period of trading in a narrow range there is little or no prospect for further share price appreciation, it could well be more the opposite case.
Last week, I was fortunate enough to catch up with the CEO, Gavin Lyons, despite it clashing with the company’s year end.
Clearly, there could be no mention of financial news or, for that matter, any hint of a possible pre-close trading update about the business, which some on the bulletin boards have been keeping a close eye on.
It was, however, worthwhile, as Gavin reminded me of the likes of cyber crime and the creation of specific viruses being very much an ongoing global industry that is run for and supported by criminals. Statistics show that last year alone there was an 118% increase in new viruses, with 62% focused on cyber crime, while the more politically motivated hacktivism was also on the rise.
And it transpires that the UK is one of the most targeted of countries, with an amazing 93% of companies being attacked in some way.
That of course is good news for Accumuli, which is focused on delivering services and solutions to clients, operating from offices in Basingstoke and Leeds, and here in Cambridge, which came about after its purchase last year of Signify.
According to recent BBC coverage, there is something of a boom within this industry with jobs a plenty and where highly skilled people are in demand.
On that front, according to Gavin, Accumuli has a wealth of excellent people on board who are now firmly established as one unit from previous acquisitions, which, Signify aside, includes the more recent £1.9m purchase of Eqalis.
While Signify provides two-tier authentication products, Eqalis delivers IT solutions for the cloud generation, while it is also the UK’s number one partner for Nasdaq-listed Splunk’s services.
While understandably there could be no mention of a possible trading update here, historically, Accumuli has delivered this in early April, while it has also, in recent years, demonstrated an ability to deliver a stronger second half performance.
No doubt, holders or watchers of the shares will be keeping a close eye on the company, which in comparison to peers, does not stand on an elevated valuation.
Indeed, this company has demonstrated an ability to generate cash, which is one of the key disciplines highlighted by the board.
Unlike many young and growing companies, Accumuli already pays a dividend, which is part of a strategy of progression, while, importantly, from an investment perspective, there is an impressive level of recurring revenue.
That, according to the interim results, was cited as running at 62% and could well increase over time as revenue continues to ramp up.
The business, Gavin explained, is split on the basis of two thirds managed and professional services, with one third technology focused.
That certainly works for Accumuli and is a mix they will endeavour to keep as they move forward, which may well be boosted by further strategic acquisitions.
While bolting on new businesses can effectively be fraught with teething problems, it appears that the CEO is delighted with the way things have progressed within the group, believing that the two most recent additions were very good acquisitions.
Looking further ahead at prospects, it would indeed seem to be that Accumuli is very much in the right place at the right time and is building on the previously laid platform for growth and strong cash generation.
According to statistics revealed by Mackmageddon.com, which is concentrated on the security arena, there are ongoing threats and breaches on an absolutely massive scale, where businesses from blue chip names to smaller companies have been targeted and subsequently attacked. This can include anything from personal data being stolen or specific accounts being hacked into, along with new and emerging threats.
Although there are some major players around in this business, it has largely been a fragmented industry, which Accumuli has been addressing via its buy and build strategy.
And thus far, things appear to be going very well here, where revenue has risen from £12m in 2012, to a forecast £18.5m for this year, which is an impressive 50% increase.
Looking ahead to next year, when the full benefits of the acquisitions should be felt, broker FinnCap is forecasting revenue to hit £22.2m with adjusted pre-tax profits of £3.4m and EPS of 1.7p.
That suggests the forward PER of 13 is at a decent discount to the sector average of 17, while importantly there is forecast to be net cash of £4.6m.
There are some impressive shareholders with significant holdings, including ISIS, Oryx, Downing, Hargreave Hale and Unicorn.
One to watch
Recruitment specialist company Networkers Intl delivers its preliminary results next week and while they should come in as forecast I am hopeful of a positive forward picture.
The shares trade at a discount to the sector and may be worth keeping an eye on.
:: More from Martin @private_punter