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Globo set for robust growth

RESULTS: Mobile phone and tablet software designer Globo is growing fast - leaving the shares looking too cheaply rated

Designing software and applications for mobile phones and tablets is driving impressive growth at Globo (GBO). What's more, the best still looks set to come after signing a contract with one of the biggest electronics distributors in the US, Ingram Micro - it also sold a 51 per cent stake in its Greek business for €11.2m (£9.5m), allowing for a greater focus on higher-growth business.

IC TIP: Buy at 41.3p

Even after adjusting for the Greek disposal, group sales from continuing operations jumped 67.3 per cent year-on-year to €46m, and pre-tax profit rose 43.3 per cent to €17.2m. There was especially rapid growth in the Go!Enterprise division, where revenue soared from €2m to over €12m. This division provides software support to integrate employees' own mobile devices with employers' IT systems - a growth area in the UK and US. Elsewhere, the consumer mobile operations - CitronGO! and GO!Social - increased revenue by a quarter to €29.2m as users jumped from 1.4m to 2.23m. Management said that growth here has continued in the three months to March - but at a slower pace.

Broker RBC Capital Markets believes that its sales estimates of €7m from the group's Ingram Micro contract could well prove to be conservative when it commences next month. The broker expects adjusted EPS of 6.8¢ for 2013 (from 5.2¢ in 2012).

GLOBO (GBO)

ORD PRICE:41pMARKET VALUE:£139m
TOUCH:41-41.25p12-MONTH HIGH:46.75pLOW: 16p
DIVIDEND YIELD:nilPE RATIO:9
NET ASSET VALUE:25¢*NET CASH:€14.2m

Year to 31 DecTurnover (€m)Pre-tax profit (€m)Earnings per share (¢)Dividend per share (¢)
200817.92.861.80nil
200923.53.202.00nil
201030.94.632.80nil
201145.312.13.20nil
201258.117.95.60nil
% change+28+48+75-

*Includes intangible assets of €22m, or 6.5¢ a share

£1=€1.18