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32Red (LON:TTR), the online gaming operator, reports interims to 30 June 2010. Total revenues increased by 33% to £7.8m (H109: £5.8m) predominantly driven by 29% growth in casino revenues and the casino acquisition. A 12% decline in poker revenues was offset by the strength of casino revenues. The revenue growth drove adjusted PBT to increase by 38% to £0.3m (H109: £0.2m). The group added 12,289 new casino players, up 26% on H109 and the group had 19,497 active casino players up 35% on H109. As important the cost of acquiring each new casino customer fell to £86 (H109: £89) – though the impact of the recession led to average casino player yield falling by 4% to £346(H109: £360). The business is debt free, with net cash of £1.1m at the end of the period. The outlook statement is somewhat positive. Trading in July and August remained strong, with revenues up 19% on the previous year and average daily revenues up 6% on H1 2010. The group’s strategy is to focus on the UK market, whilst monitoring regulatory developments in Europe and the Rest of the World with a view to expanding into new markets should attractive opportunities arise.  Despite the Board stating they are comfortable with current FY2010 PBT and EPS estimates of £1.1m and 1,9p respectively – we believe there is still scope for the market to downgrade forecasts. Assuming market expectations are achieved, the stock is rated on 7.9x 2010 earnings. We are encouraged by the progress the group has made and therefore reiterate our BUY recommendation, but reduce our target price back to 20p. (Amisha Chohan)

Belgravium Technologies (LON:BVM) Interims to June 2010 has seen revenues decline to £3.66m (£4.29m) with PBT of £0.03m (£0.14m) and EPS of 0.03p, (0.11p). The group ended the period with net debt of £0.71m (£1.41m at the Dec year end), reflecting operational cash-flow and a positive working capital movement. The group has reported an improvement in outlook with a £3m order book for delivery over the next 30 months supporting the view of a stronger H2 performance. Existing forecasts of £0.56m with 0.4p EPS look too optimistic and look set to fall. A more reasonable expectation of £0.4m PBT with Forecasts of £0.4m PBT with 0.31p EPS (assuming a 20% tax charge) puts the group on an 8.9x PER – still too high and we maintain our SELL to 2.5p. (Julian Tolley)

Brady (LON:BRY) has been selected as the partner-of-choice by a global business specialising in the processing, manufacture and supply of aluminium-based products. Brady will provide a full suite of risk management implementation on a hosted basis. The stock has almost achieved our 69p price target – we reiterate our HOLD recommendation. (Amisha Chohan)

Focus Solutions (LON:FSG) has secured a new contract with a major global retail bank client in relation to the requirements for their mortgage distribution product in the UK. The contract highlights the group’s strong presence in the retail banking sector, with the group now representing 3 out of four banks in the UK. The market forecasts 2011 PBT OF £3m and EPS of 7.4p, which rates the stock on 6.3x. The discount to the sector coupled with the contract wins today encourages us to reiterate our BUY recommendation with a target price of 54p. (Amisha Chohan)

Progressive Digital Media (LON:PRO) has announced the acquisition of Canadean limited, a business and market intelligence to the global brewing industry, for a total of £9m cash and the issue of 6.944m shares – making a total consideration of around £10.23m. To December 2009 Canadean reported revenues of £6.4m with £1m of net assets – no details of the profitability have been released  - other than the group anticipates the acquisition will be EPS accretive in the first 12 months post acquisition – suggesting it won’t be in the remainder of the year to December. We had previously recommended PRO as a Sell due to the high level of debt and the group has partially financed this acquisition with a £9m amortising loan facility provided by Mike Danson the Chairman of PRO. The acquisition will enable the group to expand in brewing related verticals and, as such, we see this as a logical expansion move by the business. However with high levels of debt and losses anticipated for the year we still see the shares as over-valued - and maintain the SELL recommendation. (Julian Tolley)

Software Radio Technology (LON:SRT) AGM trading update has highlighted Q1 (to end of June) revenues of £1.82m (+147% on the comparable period), with gross profit margins of 50% and a net profit of £0.45m. The group ended Q1 with £1.23m of net cash with no debt, up from £0.95m at the year end. Order book on 13 July was some £3.75m, since which it has announced a further £0.5m order and today it announces a further conditional order potentially worth up to £1.6m over the next 6 months. The group has renegotiated what was an exclusive distribution agreement in China as it was not happy with the performance and penetration of the potentially exciting market. After a long period with a hold recommendation we move the shares up to a BUY with a 27.5p price target to reflect the building sales momentum. (Julian Tolley)

Stadium Group (LON:SDM) Interims to June 2010 saw a marked recovery with sales up 37% to £23.13m (£16.83m) with a PBT from continuing operations of £1.45m (£0.66m), EP of 3.9p (2.4p) and the group declared an interim DPS of 0.95p (0.8p) following net cash increasing to £1.83m (£0.40m at the year end) following the sale of the Flambeau branded plastics operation for £2.11m and £0.42m of final dividends. The group is widely based across a range of sectors and, thanks to its Rugby and Chinese manufacturing bases, is geographically diverse as well. The group reports it has secured at least one new significant customer in each of its key target markets – greentech, security, transport, medical and Led with an encouraging pipeline as well. Forecasts of £3.1m with 8.2p EPS look achievable and the group has cash to go hunting for acquisitions. On a prospective PER of 7.5x we see upside to around 9x – so raise our price target from 60p to 74p and maintain the BUY recommendation. (Julian Tolley)