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.

Good news :)

A nice and und expected trading statement. Hopefully the trading will pick up from now on, with results reported in early September.

Interesting to see bid higher than offer. Doesn't happen often :)

would've been nice to a statemt that said results will be ahead of expectations to really set things alight ! however, it's encouraging that the sp has not gone down (yet!)...

Let's see if there's a gradual increase in the sp up to results...

Skyhigh, the market is a strange place. One of my stocks reported double turnover and double profit in its annual report and it's been falling since...

"Preliminary results, which will be announced in early September, will report an excellent year of trading"

Well, early Sept is nearly over... should see the results released next week ?

beginning to move up a little... watch this space!

should we be concerned that the results seem to be delayed.. is this a sign of bad news due or there is something else the're working on ?

Looks like news is on the way!

yep..'bout time as well! let's hope it's extremely good news!

I think so! Even though the results have been delayed, SP has done nothing but gone up.
My feeling is that company might be finalizing some sort of a major deal before announcing the results. We shall see.

Cool! Gone up again this morning must be getting nearer to the release of good news? ...

Someone paid 50p for 25K.......confidence ? ;)

still continuing to rise..looking good!

"Preliminary results, which will be announced in early September, will report an excellent year of trading"

Well, early Sept was 10 weeks ago now ... we must see results released released soon ? has to be something big happening !?
results must have been better than excellent and aquisition lined up ? (imho)

Results and acquisition announced!

At first glance, an excellent set of results.
kim

Final Results

Ekay plc

Preliminary Announcement of Results for the year to 30 June 2006

Ekay plc ("Ekay" or the "Company") is an advertising and marketing agency which
specialises in advising clients on the use of television, national and local
press, magazines, the internet, direct mail and posters, for business
development purposes. Ekay has particular expertise in direct marketing.

HIGHLIGHTS

* Strong results:


+ Turnover up 81.1% to 36.4 million (2005: 20.1m)

+ Gross margin up 24.6% to 2.28 million (2005: 1.83m)

+ Headline pre-tax profit up 18.0% to 1.18 million (2005: 1.00m)

+ Reported pre-tax profit of 0.97m (2005: 1.00m)

* Dividend:


+ Final dividend of 0.3 pence per share making a total post AIM admission
dividend of 111,566 for the year

* Announced today: Acquisition of Wallace Barnaby & Associates Limited

+ Consideration: 1.75m

+ Leading Channel Islands based marketing/advertising company

+ Earnings enhancing and synergistic

Eddie Powell, Chief Executive, Commented:

"The Group has continued its progress and profitability since June 2006.

"With the completion of further complementary acquisitions and the continued
organic growth of the business in a dynamic and evolving market place, we view
the outlook for the Group to be extremely exciting and I look forward to the
challenges over the next 12 months and the further development of the enlarged
Group."

what's your take on this PP ?
shame about the hits on the profits...the only fly in the ointment!
otherwise it looks good overall... wonder what'll happen to the sp now?

My take would be "mixed". Strong results, growth etc.. an earnings enhancing acquisition and good looking forward are the positives.