Unless a company has a second foreign stock market listing, Alternative Investment Market (Aim)-listed shares can’t be placed into an individual savings account (Isa). But if they're held for two years before death, the value of most of them - excluding property companies and investment firms - should be exempt from 40 per cent inheritance tax (IHT). With trading subdued at Aim-listed Motivcom (MCM), which organises conferences and employee motivation schemes, it's unsurprising that management chose to focus this little known attraction.
Much of the fall in half-year profits was Olympics-related as clients moved events and conferences into the second half. What's more, cash flow from operating activities collapsed from £3.19m a year ago to just £177,000. That's because Motivcom offered three major clients extended credit terms - from 30 to 90 days - although they had asked for 180 days. In divisional terms, Motivation (employee incentive schemes) pushed up half-year headline operating profits from £296,000 to £729,000. But profits at both the events and promotions units slipped significantly.
Broker Numis Securities expects full-year pre-tax profit of £4.3m, giving EPS of 10.5p (2011: £4m/9.5p).
MOTIVCOM (MCM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 91.5p | MARKET VALUE: | £27.5m | |
| TOUCH: | 90-93p | 12-MONTH HIGH: | 98.5p | LOW: 65.5p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 72p* | NET CASH: | £5.15m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 52.6 | 1.28 | 3.14 | 1.15 |
| 2012 | 49.2 | 0.90 | 2.15 | 1.50 |
| % change | -6 | -30 | -32 | +30 |
Ex-div: 3 Oct Payment: 2 Nov *Includes intangible assets of £24.8m, or 82p a share Aim: media | ||||
