Half-year results to June from mobile text message expert WIN were on target and confidence is high after some big client wins and expansion into new areas.

As the company reduces its focus on high-volume, low-margin business – supplying ringtones and the like – other areas are happily beginning to mature. One such is the managed services division, where WIN organises news, sport and music content on WAP mobile websites for clients like Vodafone and T-Mobile.

Significantly, WIN won its first non-mobile network contracts – with Link and AOL – to internet content as well as mobile. Chief executive Graham Rivers, who joined in August last year, would like to strengthen this area through acquisitions and has £5m cash to do so.

The biggest area of growth was in the enterprise segment, where WIN provides text message services for companies to update customers or staff. Nine wins in the period include Transport for London and E.on. Rivers hopes that these customers will soon sign up for more services, like at the AA, where an initial roadside messaging service was soon supplemented by wins with its insurance and driving school arms.

Mobile advertising is taking off too and Rivers claims WIN’s offering is ‘broader than anyone I’ve seen’. Furthermore, he expects a £300,000 investment in a new video platform to ‘bear fruit in 2008’.

WIN shares trade on a forward rating below ten, based on house broker Arden's predicted £3m full-year pre-tax profit and 21p of earnings. Prospects look rosy and they could reward a speculation.

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