News blog
Independent Media Distribution
- BY: Andrew Hore |
- POSTED: 21/05/2009 |
Independent Media Distribution says that profits in the first four months of 2009 are “materially ahead” expectations.
House broker Charles Stanley has increased its 2009 profit forecast from £500,000 to £800,000. That is still lower than the £1.1m profit in 2008 but the shortfall is partly down to the cost of opening up in France and launching new products.
Shares in IMD rose 2.5p to 37p each, valuing the online distributor of TV and radio commercials at £12.6m. The shares are trading on 21 times 2009 prospective earnings, but this is expected to fall to 13 times in 2010.
At the beginning of the year there was a loss of revenues due to the defection of a reseller to a rival. Several clients that previously went through the reseller have signed up directly with IMD and new clients have been won as well. IMD is generating more revenues from the customers it has regained but they are paying less because there is no 50% mark-up from the reseller.
There was net debt of £117,000 at the end of 2008 and IMD is now cash positive.
There could be scope for another profit upgrade at the time of the interims.
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