The precipitous drop in profits at Progressive Digital Media (PRO) largely reflects payouts to directors and integration costs. Adjusting for these and currency movements, the business intelligence provider's cash profits rose 2 per cent to £12m.
Progressive's share-based payments quadrupled to about £4.4m on the vesting of a long-term incentive plan, while restructuring costs soared to £2.6m, primarily due to the acquisition and integration of Pyramid Research and Current Analysis. Both businesses provide subscription-based business intelligence to computing and telecoms professionals, supporting Progressive's focus on that market while broadening its international footprint.
The deals fuelled an 18 per cent rise in turnover at its business intelligence division, which includes its Canadean and Kable brands; organic sales were up just 5 per cent. Revenues from Progressive's smaller events and marketing segment also swelled 14 per cent to a little short of £25m. Deferred sales rose by half to about £22m, providing good visibility for the current year.
Progressive strengthened its content and delivery platforms in anticipation of further growth. Capital spending surged almost sixfold to £2.3m as it ramped up software investments.
Broker N+1 Singer expects adjusted pre-tax profits to rise 47 per cent to £14.8m this year, sending EPS up 43 per cent to 12.9p.
| PROGRESSIVE DIGITAL MEDIA (PRO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 218p | MARKET VALUE: | £166m | |
| TOUCH: | 210-225p | 12-MONTH HIGH: | 273p | LOW: 203p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 45p* | NET DEBT: | 25% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 48.0 | -4.6 | -1.0 | nil |
| 2011 | 50.4 | 1.4 | 0.4 | nil |
| 2012 | 53.9 | 4.3 | 7.1 | nil |
| 2013 | 54.3 | 7.3 | 6.9 | nil |
| 2014 | 63.2 | 0.3 | -0.8 | nil |
| % change | +16 | -96 | - | - |
*Includes intangible assets of £42.4m, or 56p a share | ||||
