News blog
Motivcom
- BY: Andrew Hore |
- POSTED: 02/10/2009 |
Motivation services and promotions provider Motivcom did well to maintain its interim profits in a tough first half of 2009.
Reported profits were flat at £1.4m, although pre-amortisation profits fell from £1.77m to £1.62m. Revenues fell from £55.9m to £49m.
The core motivation division was hit by reduced spending by clients but new clients and a solid contribution from vouchers means that the profit contribution doubled to £510,000 even though revenues fell by 12%.
Cost savings are offsetting the lower activity levels in the events division. There was a decline in contribution in the first half but the full year contribution should be similar to last year.
The promotions division was hit by higher take ups for some promotions where Motivcom gets a fixed fee. This was partly offset by higher employee benefits income.
Net debt was £136,000 at the end of June 2009 but this is a low point in the year for cash. The end of the year cash position is always much stronger.
Numis is maintaining its full year profit forecast at £3.5m, up from £2.9m in 2008.
At 67p a share, Motivcom is valued at £19.5m. The shares are trading on less than eight times forecast earnings for 2009.
The interim dividend is being maintained at 0.8p a share and an unchanged total dividend of 2.3p a share equates to a yield of 3.4%.
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