Perform's (PER) stock rose 16 per cent on the back of these results, as investors heaved a collective sigh of relief that trading was no worse than the group indicated in its December warning. The market rout following that update cut the sporting rights group's market value in half and prompted the abrupt resignation of finance director David Surtees in January.
For all the botched expectation management, Perform made gains on multiple fronts last year, with sales both from video advertising and sponsorship and from content distribution rising over 40 per cent. The group added six more licensees to its Watch&Bet subscription service; bolstered its international presence by launching a US digital-sports platform; and expanded its content by acquiring sports-data business Opta and the rights to American basketball and Italian top-flight football.
Investors' biggest concern may be that Perform’s underlying cost base jumped 50 per cent to £172m. Costs for rights, staff and production all rose, driving a 3 per cent decline in adjusted cash profits, to £36m. Perform is handling the problem by consolidating its teams, brands and content, but still expects total costs to rise 5 per cent to £200m this year. Broker Numis Securities expects pre-tax profits of £32m, giving EPS of 10.1p (down from 10.4p in 2013).
| PERFORM (PER) | ||||
|---|---|---|---|---|
| ORD PRICE: | 277p | MARKET VALUE: | £728m | |
| TOUCH: | 271-277p | 12-MONTH HIGH: | 600p | LOW: 177p |
| DIVIDEND YIELD: | nil | PE RATIO: | 173 | |
| NET ASSET VALUE: | 111p* | NET CASH: | £17.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 67 | 7.4 | 4.6 | nil |
| 2011 | 103 | 3.5 | 1.4 | nil |
| 2012 | 152 | 16.9 | 5.5 | nil |
| 2013 | 208 | 4.1 | 1.6 | nil |
| % change | +37 | -76 | -71 | - |
*Includes intangible assets of £276m, or 105p a share | ||||
