While Crossrider (CROS), which listed in September 2014, is yet to fulfil its ambition of being "the de facto platform for delivering relevant web and mobile adverts to billions of people", its maiden results certainly showed it is moving in the right direction. Following its $75m (£50m) IPO, the company, which provides services to increase the cost-effectiveness of digital advertising, increased its monthly users by a third to 200m and has grown daily "monetised" advertising spaces by 12 per cent to 1.8bn, helping to drive sales up almost fivefold.
Most of this growth was generated by the group's flagship web business, which is benefiting from growing demand from companies for big data analysis. Since listing, the number of web app developers using Crossrider's software increased 13 per cent to 34,000. Further growth, meanwhile, is expected from new products for Apple computers and PCs.
The group's mobile solutions business has also been growing in importance as people are increasingly using smartphones and tablets. Crossrider has acquired Ajillion, a white-label mobile management platform, and mobile ad network DefinitiMedia to tap into this market, which is forecast to more than triple in size to $109bn by 2018. They contributed a combined $8.5m in revenue for the year. Management expects that figure to grow significantly in the next few years, too, helped by more global-reaching acquisitions and the appeal of Crossrider's data-driven services.
House broker Shore Capital expects adjusted pre-tax profit of $8.1m for 2015, giving EPS of 4.7¢ (from $10.2m and 5.9¢ in 2014).
| CROSSRIDER (CROS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 103p | MARKET VALUE: | £153m | |
| TOUCH: | 102-104p | 12-MONTH HIGH: | 112p | LOW: 98p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 75¢* | NET CASH: | $76m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 | 14.8 | -12.4 | -12.3 | nil |
| 2014† | 71.1 | -11.7 | -10.5 | nil |
| % change | +380 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of $35,767, or 24¢ a share £1=$1.51 †Floated in September 2014 | ||||
