Derek Pain: Winnifrith empire should in time richlyreward shareholders

Rivington Street Holdings, the most recent recruit to the no pain, no gain portfolio, is one of those companies that does not believe in letting the grass grow under its feet. So far this year it has put through eight acquisitions, launched new investment funds, moved its domicile to the Isle of Man and continued to build its presence as a small-cap adviser.

It is now stockbroker to 18 AIM-traded shares and another 20 that inhabit the Plus market. It is planning to float a number of companies on Plus and has revamped AIM-traded Hambledon Resources, and among the deals on its crowded agenda is the sale of a Mongolian mine for one of its clients. All in all it has advisory links, including public relations, with more than 100 companies.

Of course, acquisitions and other forms of growth often take time to bed down and contribute to earnings. And dramatic expansion is not always conducive to the well-being of the bidder. Indeed it is frequently said that shareholder value is too often a casualty of takeover deals. I am, however, inclined to believe that RSH's stampede for growth will, in the fullness of time, richly reward shareholders, although there may be the odd hiccup on the way.

So far the group has not managed to enchant the City. Its Plus-traded shares are around 30p against the 27.5p the portfolio paid last month. They have moved between 22.5p and 39p in the past year.

RSH is largely the creation of Tom Winnifrith. In less than a decade he has from a web tip sheet called t1ps.com developed a group embracing such activities as financial services, market research, public relations, financial software as well as corporate assistance. A host of other investment sites have also been added. Capitalisation is around £11m.

Last week the Winnifrith empire touched the US with the up to £1.75m cash and loan notes purchase of Jovis, which provides software for analysts and should fit in with other recent RSH buys. In the 12 months to the end of August the group, where the serial investor Jim Mellon is chairman, should have achieved profits of around £1.1m. This year more than £2m is likely.

Other constituents have also been active. Printing.com, a former Plus share now traded on AIM, reports a fall – from £870,000 to £620,000 – in interim pre-tax profits. The half-time dividend is held at 1.05p a share, but the group warns that its high yield status is under threat. The shares, with an 8.4 per cent return, offer one of the highest yields on the stock market but the company is "mindful" that payments are not now covered by earnings and "such a scenario cannot continue".

The group has put through its first overseas takeover, buying Media Facility of the Netherlands for a mixture of cash, shares and loan notes. The Dutch company offers similar on-line printing services as Printing.com but, unlike its new owner, which has nearly 300 outlets, has not a strong retail presence. Perhaps that is about to change. Printing.com expects some of the Dutch printing requirements to go through its Manchester printing hub.

Domestic activity remains mixed, with London and the South-east continuing to turn in the best performance.

Patsystems, also an AIM stock, has extended its reach to Argentina. The group, which provides technology advice to various electronic trading platforms, has added a Buenos Aires commodity exchange, known as MATbe, to its portfolio.

Mears is the social housing and home care group that at first sight could be a casualty of the public sector cutbacks. Although this year's profits may be a shade below some expectations, the chairman, Bob Holt, says that the current inhospitable economic climate presents "unprecedented levels of opportunity within the public sector". In a trading update he admits that current year's profits will be a shade – say £600,000 – below expectations. This stems, in what he calls a "transformational year", from "mobilisation costs" relating to new contracts, mainly those taken on from the failed Connaught support services group.

GFS, the security giant, in a generally positive update, also declares it expects to achieve benefits from the Government's spending axe.

yourmoney@independent.co.uk