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.
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: | 41p | MARKET VALUE: | £139m | |
| TOUCH: | 41-41.25p | 12-MONTH HIGH: | 46.75p | LOW: 16p |
| DIVIDEND YIELD: | nil | PE RATIO: | 9 | |
| NET ASSET VALUE: | 25¢* | NET CASH: | €14.2m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 17.9 | 2.86 | 1.80 | nil |
| 2009 | 23.5 | 3.20 | 2.00 | nil |
| 2010 | 30.9 | 4.63 | 2.80 | nil |
| 2011 | 45.3 | 12.1 | 3.20 | nil |
| 2012 | 58.1 | 17.9 | 5.60 | nil |
| % change | +28 | +48 | +75 | - |
*Includes intangible assets of €22m, or 6.5¢ a share £1=€1.18 | ||||
