KEWILL (KWL) - 63p

A familiar name with smaller company investors, logistics software group Kewill has returned to favour somewhat and an interim management statement on April 21 has helped to fuel renewed enthusiasm for the shares.

Profits for the year ended March 31, 2009, will be in line with expectations and, given the rising market capitalisation, this should ensure that the company starts to appear on the radar screens of more institutional investors.

There are already several big hitters with major shareholdings.

Kewill delivers solutions that simplify global trade and logistics. The company has a suite of software solutions that simplify the management of complex global supply chains for enterprises and logistics service providers.

Its solutions are used worldwide and to give a flavour of the quality of its clients, Kewill's global customer base covers divisions of Bayer, DHL, General Electric, General Motors, H J Heinz, Levi Strauss, Mazda, Nestle, Nike, Procter & Gamble, Smith & Nephew, Sony, Unilever, UPS, Vodafone, Yamaha and Xerox.

Based in Guildford, Surrey, Kewill also has other offices in the UK as well as Belgium, Germany, the Netherlands and Switzerland in Europe. There are offices in the USA, Hong Kong, China and Singapore, which means the company operates on a real global basis.

It has been confirmed that consensus expectations for the year to March 31, 2009, are expected to be met. Furthermore, net cash of £4 million was held at the period end following excellent cash generation from operations.

Kewill has a broad base of respectable blue chip customers, a number of which provide essential goods and services. This means that the end-users of the company's products are relatively well insulated against the current downturn.

The likes of FedEx, UPS, DHL and TNT will continue to require Kewill’s services even if the economic problems become even more severe.

It is very reassuring to see that there was net cash of some £4m at the end of March, which in itself is significant given the valuation of the business, but also provides evidence of healthy cash generation.

The shares trade at a modest multiple of earnings and the latest interim management statement suggests the future is bright.

This trading update saw the share price surge upwards but there is still scope for further appreciation either leading up to or on the back of the final results announcement, which is due out in June. We rate the shares as a BUY.

WARNING: Opinions expressed are the writers’ judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.