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
- 08 Feb 2006 10:46
- 32 of 151
I'm in too.
britshare
- 08 Feb 2006 15:05
- 33 of 151
Wow, this one is a fast mover! At this rate, we should be in the 40's by the 20 Feb.
PapalPower
- 08 Feb 2006 15:29
- 34 of 151
I like the bit "Higher achivement that at any time" :)
And it will pay a div as well, and cash in the bank, and solid organic growth.....its good ingredients :)
PapalPower
- 08 Feb 2006 16:34
- 35 of 151
"It had bank balances of 1.7 million at the year end to June 2005" so add into this some more cash for the first 6 months, thats plenty of money to spend on an earnings enhancing acquisition, so perhaps cash and shares then, and a few companies spread over 2006, might we be looking at generating a very much higher earnings figure by year end, on the same basis that SMC has listed and grown ;)
The other good thing about EKY, being in advertising, they know all about the importance of news flow and saying the right things at the right time, so there is a level of faith in that they will not be slow or shy in getting the good news out I think.
Technotamed
- 08 Feb 2006 16:42
- 36 of 151
Fantastic, added to my holdings 1st thing this morning before news. Great tip PP.
skyhigh
- 08 Feb 2006 19:24
- 37 of 151
cool ! nice one PP ... onwards & upwards
PapalPower
- 09 Feb 2006 00:12
- 38 of 151
Hopefully now we should see a run into the results, give the good side note in the announcement today.
skyhigh
- 09 Feb 2006 09:19
- 39 of 151
Good start this morning :)
Ted1
- 09 Feb 2006 09:41
- 40 of 151
I should say!!
Up 5 points nearly 20%
Stock is getting very low
Watch this could explode
Ted1
- 09 Feb 2006 11:05
- 41 of 151
Top of the leader board that should get this little gem noticed a bit more :)
britshare
- 09 Feb 2006 11:10
- 42 of 151
This is getting scary ;)
PapalPower
- 09 Feb 2006 11:12
- 43 of 151
Hello, flying today.
skyhigh
- 09 Feb 2006 11:21
- 44 of 151
Awesome! now 40p bid ! where to now ?
Ted1
- 09 Feb 2006 11:21
- 45 of 151
Don't be scared britshare just enjoy the ride.
Bets on when the sells start to come?
If they do....
xxxheroxx
- 09 Feb 2006 11:26
- 46 of 151
PP your a legend. Great tip I was able to get in nice and early to enjoy that huge rise! Cheers...
britshare
- 09 Feb 2006 11:29
- 47 of 151
The shares are scarce and very hard to get hold of. Luckily I bought mine yesterday as soon I saw the announcement. Almost 100 % in profit already (that doesn't happen often).
I see no reason to sell before 20th, and depending on the results, considering holding these long term.
I think we'll see profit taking along the way, but those will be snapped up by the eager buyers as the word spreads around. You don't come across a situation like this often in the stock market.
Papal, you seem to leave gold dust wherever you pass these days...
skyhigh
- 09 Feb 2006 11:42
- 48 of 151
Okay... I'm holding for now.. onwards and upwards..
PP.. Many thanks for the tip. nice one.
Do you have any others ?
I'm currently into ARC risk mgmt... coming into profits
HDD, IQE, CFE,
PapalPower
- 09 Feb 2006 12:02
- 49 of 151
What a nice rise, I hope everyone is enjoying it ! I am off for a lie down now, back later :)
Bugz
- 09 Feb 2006 12:09
- 50 of 151
Well done to all who jumped on-came very close to buying yesterday but bloody well missed the boat!!!!
Gonna watch the sp from the sidelines until the 20th...... Nice little stock so far!
britshare
- 09 Feb 2006 12:21
- 51 of 151
MMs are taking this opportunity to shake off as many as they can.
I thought we'de reach 40p by the results day, but at this rate double that looks posibble.