Following a healthy dose of internal investment, internet marketeer TMN enjoyed a record October and has seen the momentum continue into the second half.

Figures for the six months to October from the group showed sales 13 per cent up on last year’s equivalent at £9 million, with profits before tax up only four per cent due to the £500,000 poured into staff and infrastructure. The last four weeks were outstanding as the research division, iD Factor, benefited from 200 per cent year-on-year growth, contributing to monthly group revenue of £2 million.

Chief executive Mark Smith says this momentum has continued in the second half as the internal investment ‘really kicks in’. He says we should expect ‘more of the same’ in the second half: ‘we aim to increase our market share at TMN Media and in research, we’ll continue to cross sell between divisions and we’ll be able to play off opportunities from the launch of Envoy, our new email distribution platform.’

TMN’s stock, down from a three-year high of 94p in February, fell another 4.6 per cent on the day to 51.5p. However, house broker Investec has pencilled in profits of £4.6 million for the full year, from sales of £23.4 million, observing that the shares ‘seem priced for “failure”’ at around seven times next year’s earnings forecasts.

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