Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
 
Register now or login to post to this thread.

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.

skyhigh - 12 Feb 2006 13:26 - 84 of 151

expected to see some weekend press ?

goldfinger - 12 Feb 2006 14:26 - 85 of 151

PP, not short at all, your assumption is wrong. If it goes any higher and general market conditions fade I may be tempted to short it. I know Cawkwell is looking at it.

Good luck.

cheers GF.

britshare - 12 Feb 2006 18:21 - 86 of 151

LOL!!!!

goldfinger - 12 Feb 2006 20:20 - 87 of 151

Whats there to laugh at?, Ive sent him an e-mail covering this one with my personal thoughts.

cheers GF.

britshare - 12 Feb 2006 20:23 - 88 of 151

Double LOL!!!

I thought you had "no interest in this company, just giving a friendly warning".

Short away.....

Shearershearer - 14 Feb 2006 19:27 - 89 of 151

Hello......is there anyone still in here!!.........is this a share with no friends at all?

britshare - 14 Feb 2006 22:08 - 90 of 151

I'm here sherarer...decided to go long and ride out all the waves. Looking to sell around 1 (whenever that may be).

skyhigh - 14 Feb 2006 22:32 - 91 of 151

I'm still here also.....waiting to see what happens next week and beyond...will stick this out for the long run as well..... :)

PapalPower - 15 Feb 2006 01:00 - 92 of 151

Its just some expected profit taking that will cause a retrace, but the story remains the same, and 2006 should be a very good year I think for EKY :)

Shearershearer - 15 Feb 2006 06:58 - 93 of 151

Thank you for staying with me on this one.....I was feeling very lonely !!I always thought that this one had more in it.

PapalPower - 15 Feb 2006 10:57 - 94 of 151

The rise made it quite fully valued going into results and its natural for a pull back. I am still a holder, so eyes fully on EKY for the rest of this year :)

PapalPower - 20 Feb 2006 07:10 - 95 of 151

Ekay plc

Interim Results for the six months to 31 December 2005

Maiden Figures Since Placing and AIM Admission in Jan 2006

Ekay plc, announces its first set of results as an AIM quoted company. Ekay 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.

KEY POINTS

* Strong results:

*
+ Turnover up 158% to 16.4 million (H1 2004: 6.3m)

+ Pre-tax profit up 42% to 474,000 (H1 2004: 334,000)

* Dividend:

*
+ Interim dividend of 500,000 in the period pre-AIM admission

+ The board anticipates a final dividend for the financial year ending 30
June 2006

* Key Directorate appointments:

*
+ Tony Sullivan, Chairman

+ Julian Paul, Non-Executive Director

* 10% growth in client base with competitive position strengthened

*
+ Diversity and quality of mandates

* Possible acquisitions identified

Eddie Powell, Chief Executive, commented:

'Ekay views itself as a provider of high value, no-nonsense services which,
coupled with an aggressive approach to new business, has proven to be a winning
formula and competitive differentiator.

'In the second half we plan to increase our infrastructure through recruitment
and improved internal facilities enabling us to provide a consistently high
level of service to all our clients, both new and established.

'We have a keen eye on growth through acquisition opportunities and are
considering a number of earnings enhancing, synergistic targets and look
forward to the second half with confidence.'

20 February 2006

skyhigh - 20 Feb 2006 08:11 - 96 of 151

looks good... but what happens to the sp now ?

skyhigh - 20 Feb 2006 08:23 - 97 of 151

LONDON (AFX) - AIM-listed Ekay PLC said first-half pretax profit was up 42 pct to 474,000 stg from 334,000 stg a year earlier on sales which more than doubled to 16.4 mln stg from 6.3 mln stg.

The marketing and advertising company said its client base has increased by 10 pct during the period.

Ekay said it expects to pay a dividend for the financial year ended 30 June 2006.

Looking ahead, chief executive Eddie Powell said: 'We have a keen eye on growth through acquisition opportunities and are considering a number of earnings enhancing, synergistic targets and look forward to the second half with confidence.'

newsdesk@afxnews.com

skyhigh - 20 Feb 2006 08:42 - 98 of 151

Early indications are that the results haven't set the world alight, all the gains will slowly drain away....sp will now drift down until' the next results...maybe a good idea to sell now and buy back in at a lower price in the summer ?

britshare - 20 Feb 2006 08:46 - 99 of 151

Depending on your entry point of course. What makes you think there will be no more developments until the next set of results?

I remain long, with added bonus of a dividend payed out. This one is a keeper.

Good luck whatever you decide to do.

skyhigh - 20 Feb 2006 09:39 - 100 of 151

'ere we go... dropping already ! but... I'm here for the long term as well...

britshare - 20 Feb 2006 09:49 - 101 of 151

It's pointless watching the daily movements.
Strong growth through aquisition is ahead of us, I'm going to let the company get on with it and come back around Christmas to review my position.
Good luck to all longtermers :)

kimoldfield - 20 Feb 2006 10:02 - 102 of 151

I bought into this share recently having watched the company for a while, was encouraged when I saw Papal's BB so thanks PP! Results are very encouraging and the future looks good for Ekay, they have the right, aggresive, strategy for their field of play and should be great for a long term hold. Having said that, I confess I sold half my holding today to lock in profits and spread elsewhere; there is no way I will let my remaining shres go, they are part of my retirement plan now!
Kim

PapalPower - 20 Feb 2006 12:00 - 103 of 151

Its a strong set of results and strong going forward. We will have some profit taking now no doubt as it was a quick rise, but the future is looking good, and would expect some strong buying in the summer ahead of prelims.

Keep an eye on BIT, I hear that news is coming and fund raising is done, if this is the case, then it should rise strongly when more information is available on the new Internet Gaming.
Register now or login to post to this thread.