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Interactive Prospect Trageted Holdings huge growth potential undervalued (IPH)     

steveo - 08 Mar 2007 12:22

IPH is an online direct emailing company. It has a blue chip client base of over 250 customers and is operating in a high growth market with turnover close to 20 million in 2006.

IPH does highly targeted email marketing that can be measured so a return on investment can be assessed by the customer. This is a strong selling point over traditional media.

It puts the right message in front of the right client that and thats the unique thing about this company. IPH has 6 million profiles and can send 12 million emails a day with consent and they are specifically targeted.

Currently undervalued with respect to rest of the sector results are due 27th March 2007

Have attached last trading statement and interims, DYOR

Trading statement: 26th Jan 2007

Interactive Prospect TargetingHdgs
26 January 2007



For release 26 January 2007


Interactive Prospect Targeting Holdings Plc
('IPT' / the 'Company')

Pre Close Trading Statement


IPT, one of Europe's leading online direct marketing companies, today announces
a trading update for the year ending 31 December 2006.

Following a positive outlook reported by the Company in its interim results
trading has remained strong. The Directors expect sales for the year ended 31
December 2006 and profits after tax, to be in line with market expectations.

IPT will announce its preliminary results on 27 March 2007.

Commenting Lionel Thain, Chief Executive Officer, said:

'Our operations in the UK have performed in line with market expectations.
Directinet in France, which we acquired in May, has achieved all our post
acquisition targets and is moving ahead aggressively. We continue to grow the
business which gives the Directors confidence in the outlook for the Company.'





Interims Sept 06

Interactive Prospect TargetingHdgs
15 September 2006


For release 07.00am 15 September 2006


Interactive Prospect Targeting Holdings plc ('IPT')

Interim Results

IPT (IPH.L), the UK's leading on-line direct marketing services company,
announces record interim results for the six months to 30 June 2006, reflected
in the strong organic growth of operating profits in the core businesses. A
major acquisition in France in May, IPT'S first in Europe and largest to date,
has moved the business onto a European dimension.

Highlights

Turnover up 73% to 9.8m (2005 : 5.7m)
Headline operating profits up 156% to 1.8m (2005 : 0.7m)
Pre-tax profits up 94% to 1.75m (2005 : 1.19m)
Diluted EPS up 23% to 3.2p (2005 : 2.6p)
Total equity 31.02m, (2005 : 8.31m)
Headline operating margin 18.6% (2005: 12.6%)
Acquisition of Directinet, the leading online direct marketing company
in France, on May 24th for approx 22.4m (maximum consideration)

Commenting, Lionel Thain, Chief Executive, said: 'In 2006 internet advertising
is expected to represent the third largest segment within the total advertising
market after TV and newspapers, growing at on current estimates at nearly 50%
per annum compared to less than 4% in overall advertising expenditure. We view
the remainder of 2006 with a positive outlook. We retain our market leading
position in Internet direct marketing in the UK and with the acquisition have
established a similar position in the wider European market. The second half has
begun on a positive note.'




steveo - 12 Mar 2007 09:30 - 5 of 11

Have added a chart for those that are interested
Chart.aspx?Provider=EODIntra&Code=IPH&Si

steveo - 23 Mar 2007 08:33 - 6 of 11

Results out on tuesday, expected to be good. Just a reminder for anyone interested as it's lonely here. DYOR

steveo - 27 Mar 2007 08:21 - 7 of 11

Results were good but the market obviously doesn't think so. sp taking a bit hit due to statement that 1st half figures expected to be below last year, however with strong outlook for the rest of the year

Interactive Prospect Targeting Holdings plc (hereafter 'IPT' or 'the Company
together with its subsidiaries or ('the group') has continued to make
significant progress in the year ended 31 December 2006. In 2006, IPT's UK
businesses have experienced organic growth in revenues in excess of 30%, whilst
in May 2006 it completed its first major acquisition in Europe by acquiring
Directinet in France. Subsequent to the successful integration of Directinet,
the group will continue its policy of actively seeking suitable opportunities
for international expansion.



In the year ended 31 December 2006:

Revenue increased 77% to 24.1 million (2005: 13.6m);

Profit before tax increased by 82% to 4.4m (2005: 2.4m);

Headline operating profits* increased by 139% to 4.8m (2005: 2.0m)
(see note 3);

Headline operating margins* increased to 20% in 2006 from 15% in 2005;

Basic earnings per share increased by 47% to 8.4p (2005: 5.7p) (see note 5);

Headline earnings** per share increased by 100% to 9.6p (2005: 4.8p)
(see note 5); and

The acquisition of Directinet has been a success and was earnings
enhancing in the period since acquisition (24 May 2006);

Link to last results

http://moneyam.uk-wire.com/cgi-bin/articles/200703270701417605T.html

steveo - 27 Mar 2007 08:46 - 8 of 11

Large sell now out of the way, should bounce back now I hope, not the best start to the day, will have to hold for long term now :-(

steveo - 27 Mar 2007 14:15 - 9 of 11

Reason for fall..

Current Trading

Turnover for the first two months of 2007 shows an increase of 46% over the same
period in 2006. This period has benefited from the inclusion of Directinet,
France's number one online direct marketing company, which was acquired at the
end of May 2006. In what is traditionally the quietest trading part of the year
Directinet is trading strongly with the UK slightly behind 2006. The Board
currently believe 2007 will be another year of strong growth with turnover
expected to be at least 40% ahead of 2006. However net income for the first
half of 2007 is likely to be below that achieved in 2006. Margins in the first
half have been adversely affected in two areas. Firstly a weak market in the UK
postal area has adversely impacted sales in our postal business and secondly
sales execution within the data business. However demand for our data remains
strong and the Board remains confident for the rest of the year.

Statement not bad enough to warrant fall of this magnitude IMHO, long term outlook good, p/e now extremely favourable when compared to rest of the sector. One to watch...

steveo - 29 Mar 2007 13:47 - 10 of 11

View of Richard Muller from profit watch.

Interactive Prospect Targeting (AIM, ticker: IPH)
released a good set of results yesterday for the year
ended 31 December 2006. Sales increased by 77% to 24.1
million, profit before tax increased by 82% to 4.4m,
while basic earnings per share increased by 47% to 8.4p
and headline earnings per share increased by a
staggering 100% to 9.6p. IPH reported top line organic
growth of 30%.

The expansion into Europe via the Directinet
acquisition in May 2006 progressed well. IPH now
operates as the leader in both the UK and France in the
direct marketing market. These two markets represent
64% of the total European online advertising market.
IPH is now well positioned to expand its successful
product portfolio into Europe.

The online advertising market is expected to grow
by 18% in 2007 and is expected to reach 3.5 billion.
IPH is well positioned to capture a large part of this
growth going forward.

IPH expanded its product portfolio with the
acquisition of a 79% interest in the online market
research market, Real World Consumer Experience Ltd.
This acquisition could deliver additional revenue
opportunities going forward.

So what's not to like? Why on earth did so many
investors sell and push it through our stop loss?

--------------------------
It's all about the outlook
--------------------------

In terms of current trading conditions, the company
gave indications that investors can expect another
strong growth of at least 40% for the year, but net
income for the first half of 2007 is expected to be
below that of 2006. This shortfall is due to a weak
market in the postal division, and poor sales execution
in the data division. The first half of the year is
normally weaker than the second half of the year due to
the nature of the business cycle in which IPH operates
in.

IPH's management has been very successful over the
years building a highly profitable business in the UK.
The management team has a good track record, and we
think they will be successful with the European
expansion.

The market did not like the outlook given by
management, but we believe current weakness is an over
reaction to the outlook given. We do not believe that
the scale of the sell-off was warranted.

The stock corrected because management guided down
for the first half, so some correction is expected.
Going forward it could retrace a bit, but the market
will be cautious until the interim period, so it might
move sideways for a while. Price volatility such as
this is a key risk factor with smaller stocks.

What we do believe is that IPH stock is cheap at
current levels considering the growth opportunities of
the online advertising market. Online advertising is
the future for direct mail and it's a huge potential
market.

Just today, there was an article in the FT where it
was reported that "Internet advertising revenues have
for the first time overtaken those from national news
papers, with advertisers in Britain allocating more
than twice the share of their budgets to the web than
the global average." (Financial Times 28/3/2007 page 4).

IPH is well positioned to benefit from this trend.

--------------------------------
What to do if you still hold IPH
--------------------------------

I have had emails from a couple of people who did
not sell the stock when it hit the stop loss level. You
may be still holding this share, so we will continue to
monitor the progress of the company.

If you are still holding IPH, then stick with it.
We believe that after this initial sell-off, the shares
will recover over time, although we cannot give any
timeframes.

The macro market factors are still positive. If IPH
can accelerate the migration of the postal business
from paper mail to email, they will expand their
mailing database in the UK, and they will be set on
their growth path.

Prior to the acquisition of the French operations,
investors were questioning how sustainable the growth
is in the UK. Then IPH expanded in the EU... and now
have a larger market to grow into.

The management of this company is very experienced,
and has been in direct mail for a very, very long time,
so I am confident that they will be able to make a
success of their expansion plans.

Broker, Canaccord Adams, says: "On our revised
estimates, IPT now trades in line with the wider
European online DM peer group. We have downgraded our
12-month target price from 248p to 208p and lowered our
recommendation from BUY to HOLD."

We believe this valuation is fair, and the upside
potential from the current levels is there. We think
that the market has overreacted and that it is
unfortunate that the share hit the stop loss.

It's not all doom and gloom then......

steveo - 03 Apr 2007 13:43 - 11 of 11

p/e currently 12, returning to its true value which at p/e 17 should be 140p, currently oversold and undervalued on recent results, I see continued strong growth with new french aquisition helping to offset reduced earnings with Uk division, taking a 1 year view this is currently a buy IMHO. DYOR
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