full year results highlights, page-8

The biggest issue is that the forecast for 09 is effectively a "no growth" outcome on the annualised version of 08. This seems to be because they are planning to expense approximately the same amount as their $27m in merger savings to support further investment for future growth (can't find details, but I saw something about what it was in a news story yesterday morning).

Still very cheap though, with forward P/E of 8.2 on a potentially high growth business.

Debt is not a worry, with likely cashflow in current year - even after allowing for their investment plans and paying a 2cps div, I estimate they should be able to knock about $40m - $60m off debt.

I've felt positively about IBA throughout - and probably this reflects the fact I have made good money from them. But their successful takeover and rapid integration of iSoft would have to be one of the most impressive acquisition stories I've seen. Even the companies I rate as "excellent" with these things would normally have needed another 12 months to get the integration benefits. I think, in light of this, they can be forgiven for not spending too much energy on trying to defend the share price in the short term.

I also know of no other company that would have communicated their expectations so well or so accurately in what was always going to be a messy set of FY accounts. For as long as I have followed them, IBA have done a great job of communications - they are taking us on a huge adventure, trying to reassure us as they go - but there are a few faint-hearts on the back who won't trust them until they arrive safely at destination.