PUNT OF THE WEEK

WHAT IS IT?

Software company Pelatro provides technology to telecoms firms to help them squeeze more revenue out of each customer and stop them from straying to a rival.

WHAT’S THE LATEST?

The business doubled revenue to £4.7m and profit to £2.4m last year, boosted by the acquisition of its rival Danateq Group in July. Broker Finncap expects the shares to hit 125p and reckons it will bring in sales of £8m and profits of £4.6m.

WHO BACKS IT?

Institutional shareholders include Chelverton, Rathbone, Herald and Artemis. Management and family are heavily invested with a stake of 47pc.

WHY INVEST?

Its stock has risen around 40pc since joining the market in December 2017.

It has grown from having one product and six customers to a range of wares for clients on several continents. It also launched software to help clients advertise on mobiles.

WHY YOU SHOULDN’T

The firm has not been traded publicly for long, so investors will have to be willing to put their trust in management.

Shares have been volatile and there have also been issues with ensuring clients pay up.