Gamble of the week: A solid IT outfit

This small-cap IT contractor has the benefit of loyal customers and a reliable income, says Paul Hill.

Investing in microcaps can be an all or nothing experience. Either they invent the next best thing and their shares go to the moon, or they crash. Not so with IT outfit SciSys. Unlike some of its peers, it generates solid and predictable returns.

So, even in challenging conditions, the board expect profits will jump 20% this year. This is due to its niche technology and terrific client retention rate 74% of revenues are derived from customers who have been on the books for more than five years.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.