Telecoms and IT staff provider Networkers International says that it will meet market expectations for its 2008 figures.
House broker Seymour Pierce expects profits to improve from £5.1m to £5.6m on revenues 4% lower at £171m in 2008. The broker expects revenues to continue to decline this year plus a fall in profits to £4m.
Networkers is noticing some weakness in permanent placements and its temporary IT staffing business. Permanent business is higher margin and accounts for 15% of net fee income. International telecoms and public sector business should continue to grow.
Seymour Pierce estimates that net debt was £16.2m at the end of 2008. Gearing is 131%. The interest cover is forecast to be more than three times in 2009.
At 6.5p a share, Networkers is valued at £5.99m. The shares are trading on two times 2008 earnings, rising to nearly three times prospective earnings in 2009.
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