SOPHEON (SPE:AIM) 880p

Gain to date: 167%

Original entry point:

Buy at 330p, 22 June 2017

It is almost a year since we first flagged the transformation we felt Sopheon (SPE:AIM) was embarking on.

The company has a diverse offering, from process automation products to innovation management solutions that help enterprises manage all aspects of their new product development lifecycle.

The Surrey-based outfit is about as good an example we can think of where a management team has taken a good hard look at its product suite and operating model and moulded it to fit with what customers want.

This has led to more recurring revenues that help even out a sometimes lumpy licence cycle, plus entry into new exciting markets beyond its industrial engineering backyard, such as consumer goods, food/drink and technology.

In May the share price pushed beyond £10.00 for the first time, and while the stock has come back a bit since, it has still performed far beyond the 620p we originally said might be possible.

The shares are still not overly expensive, given implied growth. The full year 2019 price to earnings multiple stands at 21.5 versus 24% forecast earnings growth next year.

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