Porta Communications (PTCM:AIM) 10.6p Gain to date: 26.5%

Small cap marketing communications play Porta (PTCM:AIM) came alive following the publication of last week’s (27 Sep) interims. The counter soared 23% in one day on confirmation its public relations (PR) operations had experienced strong first-half growth. At 10.6p the counter still trades on just 4.6 times house broker N+1 Singer’s 2014 earnings per share forecast of 2.3p and the bullish consensus view highlights the potential for a further rerating.

Chief executive officer David Wright formed Porta in 2011. Two years later and his new outfits Newgate Threadneedle and Newgate Communications are taking PR market share in what is a resurgent Aim market. There remain execution risks given the frenetic pace of Porta’s organic and acquisitive growth drives and the company is carrying debt but if it can make this year’s full-year numbers the shares could keep running.

The buy-and-build drive does mean there are risks but the lowly rating largely takes this into account. (SK)