Quite a few updates today, so I'll try to prioritise those which are most significant (results vs. trading updates) and then see what's left.
Paul is away for a week but has rather dangerously brought his laptop with him!
Share price: 730p (unch.)
No. shares: 12.2m
Market cap: £89m
My third time covering this in as many months.
This share was sitting at 530p when I covered it in December - I've been watching it all the way up! But I think some of you have been participating in the rise, in which case congratulations are in order.
As was well-flagged by prior updates, PBT (profit before tax) comes in at £6.2 million, while net income almost reaches £4 million.
Remember that results are somewhat flattered by a GBP short exposure: gross profit is up by 27% at reported currency, or 15% in constant currency. It has heavy USD exposure, which also contributes to a higher tax charge than might otherwise be the case.
A helpful costs table is provided, so that we can see the non-underlying overheads (I tend to think of them as underlying, but at least the breakdown is fully transparent). Note the bonuses and share-based payments:
Guarded, as per usual:
We will continue to focus on our core products, particularly Ad Testing and Brand Tracking where we are beginning to get a foothold in large clients. These products are comparatively easy to grow and scale, and they also provide more revenue visibility than our other products. Nevertheless, our business still remains predominantly ad hoc, with limited revenue visibility, and as always we need to acknowledge that we cannot predict with very much certainty how revenue growth will unfold over the coming financial year. Having said that, we are pleased with the continued progress across the business and remain confident in its long-term potential.
Net cash generated from operations (pre-tax) was a very healthy £8.4 million, but the difference between that and the PBT figure is mostly accounted for by a working capital movement along with the use of share-based payments and FX gains (see footnote 7). So I personally would not read too much into the large cash flow figures given, from a company valuation point of view.
Disclaimer:All my own views. I am not regulated by the FSA. No advice.