UK-listed Microcap: 25% EPS growth for 7x EV/EBIT

Record order book + shift to recurring revenue

As you may have seen, I did some exploring outside of the US and Canada. The market that I found to be the most interesting was the UK market, even though it can be tough to acquire shares on the AIM. I have already written about one UK company, Finseta (Cornerstone). Now it is time for the second one, here is a quick overview:

• Two segments: One, a scalable segment with nearly 50% gross margins and operating leverage; the other segment provides the company with a stream of maintenance revenue to reinvest into the scalable segment.

• Since 2022, EBIT has tripled. With a record backlog for 2025 and strong barriers to entry, the company is well-positioned for further growth.

• This year, the company plans to launch its SaaS model to increase recurring revenue.

It also pays a small dividend, has a healthy balance sheet with zero debt and some cash. The company currently trades at less than 7x EV/EBIT, based on my 2025 estimates. Zero threads on X, no MicroCapClub write-up.

Note: This company trades on the AIM and currently cannot be bought via Interactive Brokers. I have bought shares via DeGiro (from Germany).