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that this tax benefit was withdrawn and, despite significant lobbying by the HCI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.

Crashed 40% in the past 15 weeks. Needs to grow by two thirds just to recover that lost ground. You guys aren't still hanging in there I trust??
Going to have to go some to achieve the directors dream of being a 100m company -- now down to about 28m.

Where did it all go wrong?

Recovered investment and let profit ride
Spoke to their pr comapany - Brokers note was blacked out for some reason and now due any day.
No profit warnings have been issued and this one might just come back if their results are on forecast.

Motivcom# - Buy (90p) - Target price 151p
Last different recommendation: Add, October 2007
Summary: Motivcom has released an encouraging operational update. The group's innovative product range is selling well and all three recent acquisitions (MTM, Zibrant and ProTravel) have been successfully integrated. The group provides a varied range of products in the business-to-employee subsector of the marketing services industry and believes that the diversity of its products 'offers substantial resilience to economic cycles'. The group is currently trading on a 2008 PE of 7.8x and we believe this does not fully reflect the organic growth and consolidation opportunities which lie ahead.
Acquisitions: In the second half of last year Motivcom made three acquisitions, all of which have been successfully integrated. MTM is performing as planned and fits well with the group's Archer Young subsidiary, with further synergies expected in 2008. Zibrant has strengthened the group's incentive travel, event management and live communications offering and management intend to exploit cross-selling opportunities across the group. ProTravel has been fully integrated into the Sales Promotion division and synergies are beginning to flow through.
Valuation and recommendation: On our 2008 forecasts (PBT/EPS 5.0m/11.6p) the shares are trading on a PE of 7.8x. With healthy organic growth and +34% EPS growth, aided by acquisitions, we do not believe this reflects the group's opportunities. Our positive recommendation is underpinned by the need for businesses to seek alternative ways to incentivise and motivate employees, using the types of services and products provided by Motivcom.
# Numis acts as broker

NUMIS MEDIA ANALYSTS (Lorna Tilbian, Paul Richards, Richard Hitchcock, Dominic Buch)

Motivcom - Interim Results

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