Motivcom - which organises events and arranges employee motivation schemes for corporate clients - saw spending from existing clients and new business wins boost group operating profit 24 per cent year on year to £4.76m.
Events delivered a particularly strong performance as clients increased their marketing spend. Operating profit there rose 69 per cent to £2.97m, despite increased investment in IT infrastructure. The promotions side, which includes employee benefits and publishing, did record a more modest 7 per cent rise in profits to £1.5m - but the second half of the year witnessed significant growth with over 80 new client programmes launched. Still, the motivation division's performance was more mixed. While its pre-paid Spree card pushed up load values by 130 per cent to over £85m, the core business - providing motivation and incentive programmes - suffered from the low-margin nature of new business wins, and divisional operating profits fell 46 per cent to £0.44m.
Group finances remain in good shape, though, with strict cash management and solid cash flow boosting the cash pile from £1.8m to £6.2m. Numis Securities has upgraded its forecasts for 2011 and expects adjusted pre-tax profit of £4.8m, giving EPS of 12p (from £4.7m and 11.5p in 2010).
| MOTIVCOM (MCM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 138p | MARKET VALUE: | £40m | |
| TOUCH: | 135-140p | 12-MONTH HIGH: | 140p | LOW: 81p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 71p* | NET CASH: | £6.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 76.7 | 2.70 | 7.57 | 1.25 |
| 2007 | 85.7 | 3.31 | 8.90 | 2.00 |
| 2008 | 110 | 2.09 | 5.02 | 2.30 |
| 2009 | 102 | 3.06 | 7.65 | 2.50 |
| 2010 | 115 | 4.39 | 10.7 | 3.20 |
| % change | +13 | +43 | +40 | +28 |
Ex-div: 13 Apr Payment: 22 Jun *Includes intangible assets of £21m, or 73p a share | ||||
