A new partnership with Targetbase means that Alterian now provides marketing software to nine of the top 10 database marketing service providers in North America. And it is these kinds of partnerships - not to mention the 56 new end-user customers the group signed up in the six months to September - that is keeping Alterian on the boil.
So, although the seasonal first-half loss widened during the period due to a 33 per cent rise in operating costs to £6.3m, this was a result of the group's investment in opening up new distribution channels. Costs related to acquisitions made the previous year also contributed to the loss. Chief executive David Eldridge says that Alterian is seeing the early success from this programme, which is expected to deliver revenues in the second half and beyond.
There's also an increasing focus on the North American market, where first-half revenue grew 24 per cent and 36 per cent at constant exchange rates. The region now contributes about 56 per cent of total revenues. However, Mr Eldridge says that the marketing spend there is probably 10 times that of the UK.
Brokers Panmure Gordon expect full-year adjusted EPS of 9.5p (5.57p in 2007), rising to 12.7p in 2009.
ALTERIAN (ALN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132p | MARKET VALUE: | £58m | |
| TOUCH: | 131-132p | 12-MONTH HIGH: | 189p | LOW: 101p |
| DIVIDEND YIELD: | nil | PE RATIO: | 32 | |
| NET ASSET VALUE: | 43p* | NET CASH: | £5.9m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 4.2 | -0.73 | -1.7 | nil |
| 2007 | 5.3 | -1.49 | -3.4 | nil |
| % change | +26 | - | - | - |
*Includes intangible assets of £7.45m, or 17p a share | ||||
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