We were among many that backed off mobile advertiser Taptica (TAP) - previously known as Marimedia - when it made the announcement in May 2015 that it was moving away from online ads to focus on mobile. The share price dropped to around 71p at the time of the announcement, but has since more than made up that ground, and has posted an impressive set of results in its first full year as a refocused business. Revenues from mobile advertising reached 86 per cent of the total, from 61 per cent in 2015.
Adjusted cash profits shot up to $25.7m (£20.6m), from $7.4m in 2015, as mobile advertiser numbers passed 600, including retail behemoth Amazon (us:AMZN). Meanwhile, Taptica has been investing in database and machine learning. Improved use of 'big data' underpinned efficiency gains, which lifted the group's gross margin to 36.5 per cent, from 27.8 per cent in 2015.
International expansion has been a key plank of the group's strategy, with offices opening across Asia-Pacific and the UK. Chief executive Hagai Tal said the company would look to expand further internationally through acquisitions, and could spend up to $50m to that end this year.
Analysts at Investec are forecasting normalised profit before tax of $25.6m, giving normalised EPS of 32.9¢ in 2017 (from $23.5m and 32.1¢ in 2016).
| TAPTICA INTERNATIONAL (TAP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 293p | MARKET VALUE: | £177m | |
| TOUCH: | 285-300p | 12-MONTH HIGH: | 318p | LOW: 61p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 84p* | NET CASH: | $21.5m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 25.3 | 4.0 | na | na |
| 2013 | 43.3 | 8.5 | 14.2 | nil |
| 2014 | 63.1 | 8.2 | 10.6 | 2.30 |
| 2015 | 75.8 | 2.8 | 3.30 | 0.78 |
| 2016 | 126 | 19.6 | 26.3 | 10.1 |
| % change | +66 | +602 | +696 | +1190 |
Ex-div: 20 Apr Payment: 20 Jun *Includes intangible assets of $33m, or 55p a share £1=$1.25 | ||||
