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Ekay - One to grow and grow (EKY)     

PapalPower - 19 Jan 2006 13:12

94373.pngChart.aspx?Provider=EODIntra&Size=283*18Chart.aspx?Provider=Intra&Code=eky&Size=
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

__________________________________________________________________

Latest Major Deals and News :

8th Feb 2006 : Notice of Results and Update : Link Here


5th Jan 2006 : Ekay joins AIM : Link Here

__________________________________________________________________

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.
________________________________________________________________

Shares in Issue = 37 million

Financial Half Year End 31st December
Financial Full Year End 30th June

Interims are due in February 2006

________________________________________________________________.

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.

________________________________________________________________

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.

___________________________________________________________________

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.

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.

PapalPower - 09 Feb 2006 12:29 - 52 of 151

bugz, although it may settle down now after the peak this morning, there is more to come with the interims on the 20th I think and well worth keeping a close eye on Eddies statement.

Should be a solid company going forward, and certainly will be more known to people now. I just wish some of this rise would go over to ACC, its struggling to wake up and that is with results soon and also an excellent pre close update, it needs some loving.

goldfinger - 09 Feb 2006 12:48 - 53 of 151

Same people taking this one up now taking it down. Be very carefull here the advfn crowd loonies have adopted it.

cheers GF.

britshare - 09 Feb 2006 12:54 - 54 of 151

What advfn loonies are you on about?
This stock is moving fast due to a very small number of shares in issue.

goldfinger - 09 Feb 2006 13:07 - 55 of 151

Gone from 47 offer to 34.4 bid, being used as a toy by some.

The smart ones took profits earlier today.

Check out comments on the other board premium.

Just giving a freindly warning nothing else.

cheers GF.

britshare - 09 Feb 2006 13:08 - 56 of 151

Some of us have a horizon that sees beyond 1 day...

goldfinger - 09 Feb 2006 13:14 - 57 of 151

And some dont. Like I said nothing malicious meant, just a freindly warning.

cheers GF

britshare - 09 Feb 2006 13:24 - 58 of 151

The "smart ones" as you put it goldfinger, will ignore the fluctuations and sell later on down the line for a 5 bagger.
Thanks for your concern, but most investors can devise their own strategy. Methinks you missed the boat. The buying price of 25p will not be seen again.

goldfinger - 09 Feb 2006 13:31 - 59 of 151

Sorry, no I wouldnt invest long term in a company like this.

Best of luck though.

cheers GF.

Technotamed - 09 Feb 2006 16:44 - 60 of 151

What a great result, how much further will these go?

Shearershearer - 09 Feb 2006 19:51 - 61 of 151

This is far greater a rise than expected (was it not 30p-35p in 3-6 months),can we now expect either a drop or a levelling out before another rise?Or is there a revision of thinking of how much,how far ?What would a dividend forecast look like?In any case a magnificent tip......thank you.

PapalPower - 10 Feb 2006 00:00 - 62 of 151

SS, I would expect a levelling, like happened yesterday afternoon, before the next rise up. Results are due on the 20th, and it looks like they will be fairly excellent.
Div forecast no idea, but last year 500K was paid out in div,
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