Shares in Globo (GBO) leapt 12 per cent after the mobile-platform provider reported a 54 per cent rise in operating profits last year. That was driven by sales of its GO!Enterprise product - which lets organisations’ employees communicate and access files securely and remotely - soaring nearly 150 per cent to €29.9m (£24.5m).
Globo’s gains will relieve shareholders, who saw the stock plummet last year amid questions over its product quality, cash flow and accounting practices. The criticism seems overblown now - Globo’s free cash flow tripled to €5.2m last year, and its CitronGO! and Go!Social products grew their monthly active user base by a third to nearly 3m.
Globo also made progress elsewhere. It expanded its product range by buying Notify Technology, a US mobile-device management business, for $5.3m (£3.2m) in October. It also widened its customer base by penning an extended deal with distributor Ingram Micro in February, meaning its entire product range can be sold in North America. A planned shift towards direct sales this year could boost revenues by 40 per cent, says chief executive Costis Papadimitrakopoulos, as partners won’t get a cut.
Broker RBC forecasts adjusted pre-tax profits of €33.3m, giving EPS of 7.6¢, rising to €47.9m and 10.9¢ in 2015.
| GLOBO (GBO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 52p | MARKET VALUE: | £194m | |
| TOUCH: | 52-52p | 12-MONTH HIGH: | 88p | LOW: 34p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 9 | |
| NET ASSET VALUE: | 37¢* | NET CASH: | €42.8m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 23.5 | 3.2 | 2.0 | nil |
| 2010 | 30.9 | 4.6 | 2.8 | nil |
| 2011 | 27.5 | 12.0 | 3.9 | nil |
| 2012 | 46.0 | 17.2 | 5.2 | nil |
| 2013 | 71.5 | 27.4 | 7.4 | nil |
| % change | +55 | +59 | +42 | - |
*Includes intangible assets of €33.2m, or 9p a share. £1 = €1.22 | ||||
