Why Prophecy International Holdings Limited soared today

Prophecy International Holdings Limited (ASX:PRO) has tripled in value in just six months.

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Junior tech stock Prophecy International Holdings Limited (ASX: PRO) lifted around 6% to $1.64 in afternoon trade after it confirmed it expects to report some blockbuster full year results.

The share price has nearly tripled in value in just six months largely on the back of the success of the company's SNARE software system, which more than tripled sales volumes over 2014.

Prophecy designs, develops and markets software to companies worldwide to help its clients improve their customer service and business systems. Worldwide partners include UK travel business National Express and the South Australian government.

The SNARE software system posted sales revenues for the year of $6 million out of an unaudited total of $9.95 million. The company also appears to have high profit margins with an unaudited profit before tax of $4.1 million, which is a total more than double last year's figure of $2 million.

The company said the SNARE sales momentum was getting stronger, with June a record sales month and July displaying the potential to be the second-best sales month ever.

A fully franked dividend of at least 2 cents per share is expected, which will take the full year total to not less than 4 cents.

The stock has run hard over the last six months and much of the revenue appears to drop straight to the bottom line meaning it certainly looks one for small-cap investors' watch lists.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned. You can find Tom on Twitter @tommyr345  You can follow The Motley Fool Australia on Twitter @TheMotleyFoolAu or Like us on Facebook The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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