Touchstone for sale

Yet another UK AIM quoted SITS company (albeit a tiddler with a market value of c£8m) seems destined to be sold after Touchstone Chairman David Thompson told its AGM yesterday that they had appointed advisers "to assist in various aspects of a review of options that could lead to an improvement in overall shareholder value". Thompson also said "As regards current trading, overall performance continues to be mixed with some divisions and sectors faring better than others. The Board is also mindful of the wider economic situation and is monitoring Group-wide overheads to ensure that they are appropriate to any change in future business levels."

Touchstone has a suite of ERP-type business software and also provides consultancy services. They had revenues of £31.4m and PBT of £1.7m in year to 31st March 08. So the current valuation is a PSR of c0.25 - pretty low for a company with some IPR.