03/05/2001
Profile Media's shares have perked up in recent weeks as it begins to win growing support in the City. The group just recently announced that it was set to purchase Marketlink Marketing Communications for £13.5m. The deal will apparently strengthen the publisher's fulfilment division and overall group finances - last year MMC made pre-tax profits of £2m on turnover of £9m. News of the deal was accompanied by the announcement that Profile had secured two new publishing contracts and that current trading was strong. Profile's interim results for the period to December showed sales of £6.5m and pre-exceptional pre-tax profits of £383,203. However, because the majority of its important publications are not due to be published until the second half, full-year results (excluding the new purchase) should actually see the group achieve profits in the region of £5.5m on sales of around £29m. At current levels, the shares trade for no more than 12 times prospective 2001 earnings. If the MMC purchase proves to be as earnings enhancing as the board hopes, the current share price could look very cheap indeed six months down the line.
| Market cap: | £37.6m |
| PE Forecast: | 12.2 |
| Share price: | 40.5p |
| AIM | 0pm |
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