Five AIM share tips for 2022

TL;DR

This analysis discusses opportunities for growth and profitability in businesses related to compliance, energy efficiency, iron deficiency treatment, giftware, and advertising.

Transcript

sure serve has two main parts of his business one is a a compliant side which is also with fire safety and gas testing and that's a good solid business which has continued throughout lockdowns and and other problems and the other side is an energy efficiency business which is involved with insulation and installing things like solar now the energy ... Read More

Key Insights

• 👨‍💼 Sure Serve's compliance and energy efficiency businesses provide a solid foundation with cash generation and potential for growth.
• ♻️ Shield Therapeutics' Aquifer offers a convenient and cost-effective alternative to traditional iron deficiency treatments, with expected significant cash generation if successful.
• 💪 IG Design Group maintains strong customer relationships, is actively reducing costs, and expects integration benefits to improve profitability.

Questions & Answers

Q: How does Sure Serve's energy efficiency business plan to bounce back?

Sure Serve's energy efficiency business is expected to bounce back due to a good underlying demand for insulation and solar installation. Despite underperformance, the company remains cash generative and has a growing dividend. The longer-term strategy is to offer energy and other services as a monthly fee, contributing to its profitability.

Q: What advantages does Shield Therapeutics' Aquifer have over traditional iron deficiency treatments?

Aquifer, developed by Shield Therapeutics, is an oral treatment that provides convenience and cost-effectiveness compared to intravenous treatments. It has been launched in the U.S., and while sales progress is still early, the forecast suggests potential yearly cash generation of £30 million if successful.

Q: How is IG Design Group addressing higher costs after the profit warning?

IG Design Group is actively assessing its cost base and implementing cost reduction measures. Additionally, the company expects to benefit from the integration of a craft products supplier it acquired last year. These actions, combined with the support of strong customer relationships, position IG Design Group for improved profitability in the next financial year.

Q: What growth opportunities does Ubiquity have in the advertising market?

Ubiquity operates in the global advertising market, which is expected to grow by over 20% this year, with digital advertising growing even faster. As an international business, Ubiquity has potential for expansion, especially in North America. The company's ability to help major advertisers assess the effectiveness of their ad spend adds to its growth prospects.

Summary & Key Takeaways

• Sure Serve is a cash-generative business with two main parts: compliance (fire safety and gas testing) and energy efficiency (insulation and solar installation). The energy efficiency business is expected to bounce back after underperforming.

• Shield Therapeutics has launched an oral iron deficiency treatment called Aquifer, which is more convenient and cheaper than intravenous treatments. Sales are still building up, but the forecast suggests potential cash generation of £30 million per year.

• IG Design Group, a giftware and craft products supplier, faced a profit warning due to higher costs. However, the company maintains strong customer relationships and is actively reducing costs. Integration benefits from a recent acquisition are expected to improve profitability.

• Ubiquity, an international business in the advertising industry, helps major advertisers assess the effectiveness of their spending. With the global advertising market set to grow by over 20%, there is significant growth potential, especially in North America.