Vocus has grown 28% since our recommendation

A recent article by The Motley Fool suggests that investors should pay particular attention to ISP and data centre company Vocus Communications Limited.

UGC welcomes this news as clients who took up this recommendation in February are now enjoying some quick short term gains, as shares in the company have risen by 28% in the last three months.

According to The Motley Fool, the rapid increase in appreciation is due to Vocus announcing its maiden dividend of 4 cents a share, fully franked. Chief executive James Spenceley suggested that in the future “On the basis of the strong results and growing asset base, the Board has decided to start rewarding the shareholders with an initial conservative dividend”.

This came on top of an exciting half year result, with the company reporting revenues rising 40% over the previous corresponding period to $21.9 million. Net profits climbed 20% to $3.5 million.

Looking forward, the company’s valuable assets, including rights to the Southern Cross cable (the primary internet connection between Australia, New Zealand and the U.S.), could lead to rising profits for years to come says The Motley Fool.

“Total capital expenditure is expected to peak in FY13, signalling the expected completion of Vocus’ transformational investment phase” said Mr Spenceley.

If you’re interested in finding out how you can take advantage of small cap companies with big growth prospects contact UGC to speak with one of our financial strategists for a No Cost, No Obligation consultation on 03 8459 2121 or email info@ugc.net.au. We would be more than happy to review your current arrangements and give you the advice you need for a more secure financial future.

The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.