PapalPower
- 19 Jan 2006 13:12



Main Web Site : http://www.ekayadvertising.com/
Investor Relations Web Site : http://www.ekay-ir.co.uk/
3 Year Financial Summary : Summary Link
Investor Relations E-mail : investor@ekay.co.uk
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Latest Major Deals and News :
8th Feb 2006 : Notice of Results and Update : Link Here
5th Jan 2006 : Ekay joins AIM : Link Here
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Company History
Ekay was established by Eddie Powell (Chief Executive) in October 1994 to create a full-service advertising agency specialising in direct response advertising to the sub-prime broking, debt consolidation and mortgage broking sectors.
The business was incorporated as Ekay Advertising and Marketing Limited on 20 April 1999.
Ekay's position now in the market is that of a specialist in direct response advertising. This is the process of providing advertising through media targeted at a specific audience, with the aim of creating a direct response from the consumer, typically an enquiry for a product or service. Ekay offers a complete direct marketing solution to its clients, utilising both off the page advertising and direct mail solutions. An advantage of direct response is its easy measurement of effectiveness, relative to other marketing forms. The Company offers a complete design and strategy service, for its clients.
The business has grown rapidly over the past three years into a significant direct response advertising agency in the UK, and on 24 November 2005, Ekay Advertising and Marketing Limited became a public limited company and changed its name to Ekay PLC, prior to its admission to AIM in January 2006.
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Shares in Issue = 37 million
Financial Half Year End 31st December
Financial Full Year End 30th June
Interims are due in February 2006
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Notice of Results Ekay PLC 8th Feb 2006
Notification of Interim Results
Ekay PLC, ("Ekay" or the "Company")the full service advertising agency which
was admitted to AIM last month will announce its interim results to 31st
December 2005 on 20th February 2006.
This will be Ekay's first set of results as a quoted company and are expected
to show a period of achievement higher than at any time in the Company's twelve
year history.
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Extract from www.allnewissues.com write up, conclusion was buy if you can get your hands on some.
Background - Ekay, a direct marketing business, is a profitable company, throwing off cash of around 750,000 a year. It had bank balances of 1.7 million at the year end to June 2005 and is currently valued at a very reasonable 7.9 million
Operations - Edward Powell learnt the tricks of the advertising trade at The Mirror Group, where he spent a few years selling advertising space to both financial and advertising companies. Convinced that a full service advertising agency was the way ahead, he set off to start his own business specialising in direct response advertising, selling to the sub-prime broking, debt consolidation and mortgage broking sectors. Ekay was born in 1994 and the business was incorporated as Ekay Advertising and Marketing Limited in 1999. The company now provides specialist advice to clients, telling them how best to use various forms of media to get the message across to their target audiences. The focus is on direct marketing which facilitates immediate response, allowing the client to calculate the exact return on advertising spend. Ekay claims to have a history of long term relationships with its clients, some of whom have been on the books since 1999. Ekay's current focus is television, and the board believes it is a 'recognised expert and market leader' in this niche sphere. It is hoping that its entry into new media - SMS, text messages and web advertising - will boost its sales and push its profits higher. The business focus is on the financial services sector at the moment, but recent contract wins seems to have pushed the company into other areas.
Business Development - While the business is charging ahead in terms of organic growth, Powell is keen on buying smaller, complementary marketing services in order to enhance profits growth. Ekay has set up a design department to provide online media services, in house. The team has also identified regional marketing opportunities and might establish regional hubs. Ekay is confident of maintaining its position in the market as it sees advertising spend increasing, digital media becoming more popular, and technology improving. Most of EKay's revenues come from commission generated by the owner of the media space. It also charges a one off fee for its design and consulting services. And while it has predominantly catered to the financial services sector, Ekay has started working with national car dealerships, surgery clinics and shopping centres. The business has a strong record of profitability and has recorded consistent growth over the last three years. While turnover has more than trebled from 6.4 million in 2003 to 20.1 million in June 2005, profits have quadrupled from 208,299 to 751,550 in the year to June 2005. There is clearly no immediate need to pass the hat around as the company has stated that it has working capital to survive for another 12 months.
In the first half of the current year, trading levels have been encouraging. The group has added on six new accounts to its client portfolio and client billings for the first quarter has been the highest since the company's incorporation. The icing on the cake - the business intends to pay out a large chunk of its profits in dividends.
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My feelings on EKY, firstly they have cash in the bank (around 1.7m) but earnings enhancing acquisitions could be done cash, debt or the paper way . If you look at EPS, then on a historic basis with profit after tax being 751K for year to June 2005 then last year EPS was 2p so at 25p they are on a historic PER of x 12.5. Considering there should be a very decent dividend paid out, that to me is too low, and with earnings enhancing acquisitions being lined up, I see potential for some very strong growth with plenty of earnings upgrades and a rising price. Worth having a holding in I think, things could get exciting come interim results in Feb.
britshare
- 20 Feb 2006 09:49
- 101 of 151
It's pointless watching the daily movements.
Strong growth through aquisition is ahead of us, I'm going to let the company get on with it and come back around Christmas to review my position.
Good luck to all longtermers :)
kimoldfield
- 20 Feb 2006 10:02
- 102 of 151
I bought into this share recently having watched the company for a while, was encouraged when I saw Papal's BB so thanks PP! Results are very encouraging and the future looks good for Ekay, they have the right, aggresive, strategy for their field of play and should be great for a long term hold. Having said that, I confess I sold half my holding today to lock in profits and spread elsewhere; there is no way I will let my remaining shres go, they are part of my retirement plan now!
Kim
PapalPower
- 20 Feb 2006 12:00
- 103 of 151
Its a strong set of results and strong going forward. We will have some profit taking now no doubt as it was a quick rise, but the future is looking good, and would expect some strong buying in the summer ahead of prelims.
Keep an eye on BIT, I hear that news is coming and fund raising is done, if this is the case, then it should rise strongly when more information is available on the new Internet Gaming.
Shearershearer
- 20 Feb 2006 21:35
- 104 of 151
Hey,I'm still with you guys,I think this is a solid company and we will do well to stick with it longer term.Once we get the prelims the action will start again,in the same way as we have just seen.This is a one to keep in the back pocket !!
skyhigh
- 07 Mar 2006 18:05
- 105 of 151
Interesting... wonder what'll happen to the SP now ?
Ekay PLC ('Ekay')
Directorate Share Holding
In order to satisfy market demand and at the request of the Company's broker,
Shore Capital Stockbrokers Limited, Eddie Powell, Chief Executive, yesterday
sold 150,000 ordinary shares in Ekay at 27 pence per share.
Following this disposal, Mr Powell holds 34,850,000 shares representing 94.1%
of the issued share capital.
7 March 2006
skyhigh
- 23 Mar 2006 14:36
- 106 of 151
disappointing that the SP bid is dropping...looks athough it's going to track back to it's pre - reults level of 24p ish..
What's even more diappointing is that I didn't take profits when it hit 50p...as this is what I'm in this game for...
Missed a trick there so only option now is to place this on the backburner and wait... and hope it gets to 50p again..
Technotamed
- 23 Mar 2006 16:58
- 107 of 151
I bought in at 24p and sold high because of my stop-loss. Obviously over valued at its peak and thought it would drop to maybe 30p, I'll be back to repeat the perormance in the summer.
PapalPower
- 24 Mar 2006 00:46
- 108 of 151
skyhigh, it will liven up again before the next results, just back burner until then :)
skyhigh
- 24 Mar 2006 09:35
- 109 of 151
PP... thank you for your words of encouragement... need it even more now as bid down to 25p.... with due respect, it is a bit of a shambles that it's gone down this week... after all, nothing's changed, no bad news or anything... it's what I can't understand about this game....becoming v. cynical and disillusioned with EKY. SP performance.
As you say... keeping this on the back burner ! :(
skyhigh
- 05 Apr 2006 14:27
- 110 of 151
Crikey ! Some activity at last! someone's bought in...!
skyhigh
- 18 Apr 2006 15:55
- 111 of 151
What's cooking!
PapalPower
- 19 Apr 2006 07:35
- 112 of 151
A bit of interest, as there should be given it was nearly back to the original price again..... :)
skyhigh
- 19 Apr 2006 13:06
- 113 of 151
What the h%@ll's going on ! Bid dropped to 23p ? doesn't make sense... something sinsister going on here !?
britshare
- 25 Apr 2006 14:36
- 114 of 151
I've added more today. Looks like it's moving out of hibernation.
PapalPower
- 25 Apr 2006 14:55
- 115 of 151
Has moved up well today..
skyhigh
- 25 Apr 2006 15:14
- 116 of 151
What the h%@ll's going on ! Bid hiked to 30p?
doesn't make sense... something sinsister going on here !?
(not complaining though!)
Is there some good news about to break ?
britshare
- 25 Apr 2006 15:25
- 117 of 151
Golden cross soon to be formed?
britshare
- 25 Apr 2006 15:29
- 118 of 151
I've just pushed the bid up to 32, got myself another 3000.
skyhigh
- 01 Jun 2006 18:29
- 119 of 151
From the Feb results....
'In the second half we plan to increase our infrastructure through recruitment
and improved internal facilities enabling us to provide a consistently high
level of service to all our clients, both new and established.
'We have a keen eye on growth through acquisition opportunities and are
considering a number of earnings enhancing, synergistic targets and look
forward to the second half with confidence.'
As we enter the last month of the current FY does anyone have any news and views on what might be going on ? and what we might expect ?
PapalPower
- 02 Jun 2006 01:41
- 120 of 151
skyhigh, with the present market sentiment they might put it back a little ?? I do not know.