Micro Equities lifts ISS FY12 forecast

Stock advisor Micro Equities has upgraded its profit outlook for industrial software company ISS Group, citing the company's strong 1H earnings and recent contract wins

Microcap stock advisor Micro Equities has raised its FY12 and FY13 profit forecast for industrial software developer ISS Group (ASX:ISS), after the company posted strong 1H results.

Micro Equities is now expecting ISS Group to report an FY12 profit of $2.8 million, up from its prior forecast of $2.3 million.

The FY13 forecast was upgraded from $3.5 million to $4 million, and the projected FY12 dividend was lifted to 1.4 cents from 1.5 cents.

ISS recently reported a 252 per cent increase in 1H12 post-tax profit to $2.7 million, from 15 per cent higher net revenue of $11.6 million. Micro Equities had been expecting 1H12 profit of just $2.3 million.

The company last week also revealed multiple contract wins, including deals to provide support software to a BP LNG plant in Indonesia, mining outfit Panoramic Resources and US-based energy company Hess Corporation.

Micro Equities has a “strong buy” recommendation on ISS shares, and has upgraded its target for the stock to $0.27 from $0.24.

ISS shares were trading at $0.190 on Monday, before the forecast, and closed out Tuesday's trading up 5.26 per cent to $0.200.

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