Shares digital

Last week’s upbeat trading statement suggests Strategic Thought Group (STR:AIM) may finally be turning the corner after a torrid period, which saw four profit warnings and culminated in the departure of chief executive Richard Higgs last summer.

Rising licence sales for the Wimbledon firm’s Active Risk Manager (ARM) software have driven group sales in 2007 up by 15% to £12.5 million, well ahead of the consensus £11.5 million forecast. The stronger than expected top line progress also enabled new chief executive Martin Metcalf to say pre-tax losses will be much lower than expected.

The shares in Strategic Thought Group, which expects to report its full-year figures in June, jumped 12% to 37.5p, although this is still way below June 2005’s 120p listing price.

Shares says: A £4 million cash pile provides useful support to the valuation and the shares are worth a high-risk punt.

by: Russ Mould