The UK's largest Orange phones dealer reported a jump in first-half operating profit to 532,000, up from 32,000 in the previous year.


Celltalk's chairman Derek Joseph said the second half of the year has started well, with trading levels in line with those seen in the first half. And Joseph also said that potential acquisitions and other expansion opportunities are now being actively considered by the group.

Looks to be back onits feet now and producing good profits

RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004


2004 2003
Turnover 6.65m 4.57m
Operating Profit 0.53m 0.03m
Exceptional Item* 0.74m -
Retained Profits 1.26m 0.01m
Earnings per share 2.13p 0.06p
(excluding exceptional item)*
Earnings per share 5.17p 0.06p
(including exceptional item)*

With only 24,310,000 shares in issue and turnover increasing, profits on the up and dept being reduced it should bode well for 2005.

Also from the latest results
The improved trading position is due to a number of factors, both external and
internal. External factors included the higher level of competition between
networks, particularly resulting from the entry of 3 into the market, which has
improved commission levels. New generation of camera phones which encouraged
upgrading and more willingness to consider contract arrangements rather than pay
as you go. Lastly, the difficulties in the market over the last few years have
reduced the capacity and there is a now a better balance between supply and
demand.

Internally, the release of Celltalk plc, the main trading subsidiary, from the
CVA earlier this year has been followed by investment in new technology,
relocating the call centre to a more permanent location and some limited
expansion. The improved cash flow has enabled decisions that should provide for
cost benefits over a longer time period.

One good set of figures for the half year will not reinstate the value that we
believe the Group should be bringing to shareholders. We need to continue this
progress and consolidate the performance for the full financial year. Further
cash needs to be generated to fully repay the outstanding short term loans from
the directors, and to provide ongoing working capital for expansion. In view of
the Group's trading performance and strengthening liquidity in the first half of
the year further repayment of the short term loans amounting to 200k will be
made to the executive directors reducing the outstanding loans to 450k.

It is early days, but the second six months of the year have started well with
trading continuing at similar levels as for the first period. Possibilities for
organic growth and potential acquisitions are now being actively considered.
Reporting profits, accumulated tax losses, a significant customer base and an
infrastructure on which economies of scale can be built, is a platform which can
be used to attract complementary business and expansion opportunities. I
therefore look forward to reporting further on these in my full year statement.

It is with great satisfaction that I am able to extend my thanks to both staff
and fellow directors, not just for their loyal support and hard work in
difficult times, but in taking the Group back to significant profitability and
for us all to look forward to a positive future.

Brougt in 3 weeks ago at 29p.

Are you in?

This share rises on small buys but also it can fall just as quick. Longterm this has to be a buy though IMHO but DYOR

Trades over 3000 are delayed by 2 hours

Good luck

Another nice tick up today I see.

Could also be that there is interest building in this share as peeps realise the potential. 1/2 mil profit in iterims and second half started as strong.

Dont forget only 24 million shares in issue and if it makes 1.3 million profit eps would be 5.4p giving it a current pe of under 8

expanding companies usually have a pe about 15 and above which would give a share price of 81p

I expect profits to be in the region of 1.2-1.7 million tops.

Could also see it report a div payment but this may not happen until the following year but you never know.

DYOR

Martin

Martin. I've posted your ADV item on here as it was most informative:


Last interims were very positive indeed

For the six month period to 30 September 2004, turnover was 6.65m (2003:
4.57m) and operating profit was 632,000 (2003: 132,000)

It is early days, but the second six months of the year have started well with
trading continuing at similar levels as for the first period. Possibilities for organic growth and potential acquisitions are now being actively considered. Reporting profits, accumulated tax losses, a significant customer base and an infrastructure on which economies of scale can be built, is a platform which can be used to attract complementary business and expansion opportunities. I therefore look forward to reporting further on these in my full year statement.

And what do we know that has happened in the last 6 months

As part of the Group's expansion strategy, Celltalk has acquired the
infrastructure, IT and telecom assets from the Administrator of The Beneficial
Group Limited, previously a Manchester based mail order mobile phone operator.
Twelve (12) staff have been absorbed within Celltalk's existing sales staff
network increasing the Group's mobile phone call centre sales capacity.

So they have increased their sales team as well as their IT infrastructure. This can only lead to an increase in sales and that is backed up in their next RNS

'The improved levels of trading as reported at the interim stage have
continued, strengthening cash liquidity of the Group. As a consequence a
further repayment of the Executive Directors short term loans, totalling
200,000, has been made. These repayments will help reduce financing costs.
The outstanding Directors loans now total 250,000 and it is intended that if
trading continues at current levels further repayments will be considered.


To enable expansion of the Groups mobile phone call centre operations additional space has been leased at the Groups new offices in Manchester.'

Why would they want to lease more office space, it can only mean more staff which = more revenue = more profit. Repaying another 200,000 in loans half way through the period must mean that they intend to pay the remainder on result day.

So here we have a business with margins increasing since 3 joined and increased competition. Also people upgrading to camera phones and Orange 3G has started its roll out.

I expect to see full year operating profits in the region of 1.5 million ( I have taken the first 6 months figure as 650,00) giving us a forecasted EPS of 6.17p which inturn will give us a pe of 8.5. Sound cheap to me. Shares of this nature would normally have a pe of 15-20 but the market will have it discounted as it has yet to prove itself over a full year. Me, I expect very good results and a possible dividend.

Cheers Grevis.

Well results are not far away. They have increased their staff numbers by 30% in the last 6 months as well so turnover should be close to 15 mil for the year

Could luck to those that hold. Up 70% since I reccomended this one and there is still room for another 100% by end of year IMHO

Dont forget if you are thinking of buying some DYOR.

Cheers

Martin

Cheers Martin. Their results were reported on 2 July last year, but as this would mean a Saturday announcement then perhaps we can expect this years results either on Friday 1 or Monday 4 July

LONDON (AFX) - Celltalk Group PLC year to March 31 2005

Sales - 14.60 mln stg vs 10.51 mln

Pretax profit before exceptionals and goodwill - 1.13 mln stg vs 157,159

Pretax profit - 1.68 mln stg vs loss 42,841

Operating profit on continuing ops - 924,248 stg vs loss 7.45 mln

EPS - 6.84 pence vs loss per share 0.21