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Independent Media Distribution
- BY: Andrew Hore |
- POSTED: 14/03/2010 |
Independent Media Distribution has improved its margins significantly.
IMD lost a reselling client early in 2009. The loss of the reseller could have cost the online distributor of advertising to TV and radio stations more than £1m in revenues. However, most of the customers have been signed up directly and although not all of the revenues were retained the ones that were are at better margins.
Overall revenues grew 9% to £8.08m, while underlying profits improved from £1.1m to £1.7m. Even though advertising spending may have fallen there were still a large number of different adverts being transmitted.
The German operations are profitable but it may take another year or so for France to move into profit.
Adding new products and services has also helped IMD to grow. Management believes that it may be able to spot other businesses that it can acquire that will add further services to its product range.
The total dividend has been raised from 1.05p a share to 1.2p a share. Strong cash flow has helped IMD to move to a net cash position of £893,000.
Trading has been strong in the first couple of months of 2010. All of the core operations are growing revenues.
House broker Charles Stanley has raised its 2010 profit forecast by 22% to £2.2m. The shares are trading on 12 times prospective 2010 earnings.
At 55p a share, IMD is valued at £18.8m. The share price has doubled over the past year.
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