These were IBEX Global's (IBEX) first set of results since it floated on the alternative investment market (Aim) in June and flotation-related costs did blight the reported figures. But the underlying picture looks encouraging with adjusted cash profit having jumped to $4.6m (£2.9m) from $0.9m in the prior year.
IBEX provides call centres for blue-chip clients and they have been sending more work IBEX's way. What's more, the company has a high level of operational gearing - its chunky employee costs are bad news when business is quiet, but when revenue increases that quickly translates into big profit jumps. The company is heavily reliant on an unnamed trio of big clients, from which it generates around half of its revenues. So the company is keen to diversify its customer base to ensure it doesn't keep all of its eggs in one basket. Indeed, house broker Liberum Capital says that IBEX is awaiting news on 10 potential new customers and should hear whether they have successfully secured some of these customers in the next three months.
Liberum believes the results were in line with expectations and continues to expect adjusted pre-tax profit of $7.7m for 2014, giving adjusted EPS of 18.2¢ (from a loss of 1.3¢ in 2013), rising to 24.5¢ in 2015. The broker also expects a dividend of 11.8¢ for 2014.
IBEX GLOBAL SOLUTIONS (IBEX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 195p | MARKET VALUE: | £77.1m | |
| TOUCH: | 192p-197p | 12-MONTH HIGH: | 197p | LOW: 150p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 56¢* | NET DEBT: | 13% | |
| Year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 86.6 | 2.24 | na | nil |
| 2011 | 97.1 | -2.48 | na | nil |
| 2012 | 105 | -4.05 | -13.1 | nil |
| 2013 | 142 | -17.0 | -48.0 | nil |
| % change | +34 | - | - | - |
*Includes intangible assets of $9.2m, or 23¢ a share £1=$1.61 | ||||
