heading in the wrong direction, page-11

That seems a bit overly negative, KC.

ISF may be affected by currency moves, but won't be as affected as many Australian exporters as most of it's costs are offshore as well. For other exporters, with their cost base in AUD, the squeeze is on margins.

By my calcs, on yesterday's figures, the NPAT excluding acquired intangibles will be about $77m for ISF in 2010, c.f. $66m in 2009. At 76cps, that's a forward PE of 10.6. And only if the AUD stays high against the GBP. (Could get worse if it goes higher this year, but that would cause problems all round).

(We could have a debate about whether acquired intangibles should be deducted, but I think in this case is valid as a closer indication of free cashflow)

ISF are very carefully negotiating the NPfIT hurdles and I rate their chances of getting through the roll-out process with a clear round as high. They are risk-takers but, more importantly, risk-managers. The progress on Bury was an important step forward and will be the first of several steps over the next 12 months as progress accelerates and the mood of negativity invading NHS IT subsides.