One of those type of business which make me personally cringe, well it would if I was an employee, but the fact is that this business in the support services helps companys and organisations get the very best out of his main assets, thats the people working for them.

Heres a run down on just what it does and the differing divisions it as.

The Group is one of the leading performance improvement businesses in the UK
with over 16 years' experience in delivering incentive and motivation programmes
to clients. These programmes focus on the rewarding of employees, distributors
and customers. The Group has three operating divisions: Motivation and
Incentives, Incentive Travel and Live Events and Sales Promotion and Employee
Benefits.



The Motivation and Incentives division has made further investment in both sales
and product development to take advantage of the increasing recognition by UK
companies of the need to find new and innovative ways of motivating employees.
Existing technology platforms (rewardbanking.com, rewardvouchers.com and
recogniseme.com) have been built on with the introduction of 'Spree' a pre-paid
incentive Visa card. This has resulted in a significant upturn in new business
activity and strong prospects for 2007.



The Incentive Travel and Live Events division has continued to demonstrate
sustained growth and has seen a 44% increase in new business opportunities, with
win ratios continuing to remain at the normal levels. Archer Young, acquired in
2005, continues to make good progress, making a contribution to Group profits
and fully justifying the investment. I am pleased to report good forward
visibility for further growth in 2007.



The Sales Promotion and Employee Benefits division has again performed well.
The annual contract renewal cycle for our 'Lifestyle' product has to date
resulted in a 99% repeat purchase pattern, demonstrating the value of the
offering and indicating an excellent future revenue stream.



The Employee Benefits division had made a considerable investment in developing
and marketing a Home Computer Initiative (HCI) benefits programme and had won
contracts from a number of public and private sector organisations. However,
the Chancellor announced in the April 2006 Budget, with only 3 weeks notice,
that this tax benefit was withdrawn and, despite significant lobbying by the HCI
industry, this status remains. We have absorbed all abortive costs in the first
half and there has been a short term impact. However, we continue to work with
many of the clients, who have appreciated our efforts on their behalf, to
provide them with alternative programmes with the result that revenue prospects
and further new and exciting product offers have been developed.ENDS.

Looking at the financials I find that the company is capitalised at 25 million, Its price to /book ratio is 4, and it is trading on a forward P/E to Dec 2007 of just 11.4 has a peg of 0.8 and the company is eyeing up earning enhancing acquisitions.

Well worth a further look as I beleive it will offer much further upside.

DYOR.

From GCI..

Motivcom in a world of its own - BUY
Companies: MCM
08/12/2006

Motivcom, the venture that used to be known as P&MM Group, is hoping to make a killing in the b2e space. This is the snazzy new term that signifies business-to-employee services the activities a company undertakes to attract and retain staff in competitive markets. It encompasses everything from employee benefits, training and incentives to bonuses and perks, and it is becoming a very attractive niche for Motivcom the only pure-play listed company in this sector.

The group joined AIM back in August 2004 and as well as hoisting revenues and profits, it has been active on the corporate front, albeit with smaller bolt-on acquisitions, rather than transformational deals. It has snapped up promotional risk management business Fotorama; competitor Archer Young; internal corporate communications experts Summersault; and incentive voucher supplier The Voucher Shop. Together they add around 4 million revenue to Motivcoms top line and provide important synergies and cross-selling opportunities.

The company is currently divided up into three areas: motivation and incentive services, conference and travel services, and sales promotion and human resources benefits. In the larger part of the business, clients such as British Gas, Mercedes-Benz and British American Tobacco now come to Motivcom to improve staff loyalty, reduce absenteeism and/or improve productivity. The group reckons that if a client follows its advice and implements its services, it can deliver a 10-20 per cent improvement in staff turnover and productivity. Given Britains service dominated economy and low unemployment, these kinds of advances are very much in demand. The two sales promotion divisions offer free cinema tickets or travel vouchers and the like to consumers of such companies as Danone, MBNA and Toshiba.

Investment in new products is one of the key drivers of growth. In November the company launched Spree-flex, the UKs first flexible benefit pre-paid Visa debit card, whereby employees can have part of their pay loaded onto their card and then receive savings at an array of high street stores such as Currys, Argos and Debenhams. Market forecasters expect this to be an area of strong growth, and thousands of clients staff have apparently already signed up. Chairman Lloyd declares that Spree has increased new business activity significantly and provides great prospects for 2007.

Just like its product offering, the board structure at Motivcom is somewhat unique. There is a non-executive chairman, Colin Lloyd, another independent non-executive director and a finance director in the shape of Sue Hocken. The remainder of the board is made up of three executives who each run a subsidiary.

While unorthodox, this team has nevertheless delivered consistent profits and sales growth, with only Septembers interim results showing relatively flat profits, of 939,000. This was due to a major contract that will now fall in the second half of the current year instead of the first. Total income (headline turnover minus costs, which are billed back to clients) was up 25 per cent to 6.3 million and house broker Numis predicts strong growth for the full year, confirming that the company has already confirmed orders for 83 per cent of its budgeted full year income.

Even more exciting is the possibility of some serious takeover activity. Weve done our apprenticeship and now were looking for larger acquisitions, pronounces finance director Sue Hocken. We want one that will contribute 1-to-1.5 million of operating profit. From the fragmented market around them, the board has four or five currently on the radar and Hocken presides over more than 5 million net cash for this purpose. She is confident that there is a huge amount of value that can be created, asserting that were looking to become a 100 million company by 2010!

The board holds 76 per cent of the company, with Fidelity and Merril Lynch together taking that up to 95.6 per cent. The shares have nevertheless appreciated some way from their 54p issue price but still currently change hands for under 12 times full year earnings, falling to less than nine if you factor in net cash. That is too cheap for a company with abundant prospects and plenty of cash in a fragmented, growing market.

Small tick up today.

These have sprung into life over the last few days, keep an eye on them.

And up they go again on a forward P/E of circa 13, and have plenty of cash for bolt ons.

Moving up nicely.

Prospective P/E of 12.4 and PEG of 0.2 to end of Dec 2007.

Very cheap.

Moving along steadily, no acquisitions yet.

Excelent results and Outlook statement very positive...

Motivcom FY pretax up 34 pct; continues to seek earnings-enhancing acquisitions
AFX


LONDON (AFX) - Motivcom PLC posted a 34 pct rise in its pretax profit for 2006, in line with market expectations, and said it continues to seek earnings-enhancing acquisitions.

Pretax profit came in at 2.7 mln stg in the year to end-December, on a combination of organic growth spurred by new product development and the acquisition of Summersault Communications Ltd and The Voucher Shop.

Revenue for the year rose to 76.75 mln stg from 26.39 mln, with 38 pct of this increase resulting from the acquisition of The Voucher Shop.

The board recommended the final dividend be raised to 0.90 pence per share from 0.75p a year earlier, lifting the total dividend for 2006 to 1.25p.

The company said it expects continuing progress in 2007 and that early indications show good visibility of foreword contracts and a likelihood of the group exceeding its internal gross profit forecasts.

newsdesk@afxnews.com

ran/tsm/jr

gf
Sorry of topic can you give your thoughts on MEA on that board, cheers in advance.

Hi driver,

I dont hold MEA I think you have got this one mixed up.

Cheers GF.

GF, I was about to point out MEA to you as well. Have just begun a new thread. PE 6 and profitable/growing. Looks good but I know you'll DYOR.

Thanks for that ST.

Ive already had a quick gander after Driver raised it earlier this morning.

I need to do more sifting.

Chart looks healthy...

It certainly does, GF!

Moving ahead nicely.

TA getting even better..

Forward P/E of 16 going to 31st of Dec.

Not very cheap but still plenty more to be squeesed from this one.

Nice to see this one carrying on its good run, cant be far off a 50% gain since December.

A little dated but worth a look......

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=90349

Nice to see these back in the blue.

Been a few too many down days on little volume over the last few trading days.

Blue from the off again..... NICE.