News blog

Electric Word

• BY: Andrew Hore |
• POSTED: 14/02/2013 |

Education, health and sport information publisher Electric Word was hit by the poor performance of its healthcare division in the year to November 2012.

Revenues dipped from £15.1m to £14.3m, while a pre-tax loss of £4.68m was turned into a profit of £173,000. However, stripping out restructuring, one-off and amortisation costs, profit fell from £1.39m to £1.09m. Central costs were flat. Net cash was £108,000 at the end of November 2012 thanks to the £1.4m net raised in the placing and open offer at 1.5p a share in September.

The health division contributed EBITDA of £444,000, which was 43% lower than the previous year. The sports performance business fell into loss. There was also a one-off write-down of £300,000 relating to one of the businesses in the division.

The sport and gaming division makes the majority of profit. EBITDA was flat at £1.31m as revenues rose 10% to £5.18m. The iGaming business was behind the growth in revenues but increased investment in sports sponsorship products held back profit.

There was a 16% decline in education revenues to £4.6m but EBITDA rose 6% to £263,000. Lower margin business was shed during the period and there were lower subscription levels.

At 2.05p a share, up 0.17p, Electric Word is valued at £8.19m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFFebruary2013_41.pdf