A recent Company Watch recommendation at 136p, mobile phone content services provider Velti has dialled-up impressive share price gains. A bullish first half update has only added to the feel-good factor surrounding the Greece-based group, which has built strong market positions in neighbouring Balkan countries and is expanding in the UK and the US.

In a bullish missive, management said the financial performance for the seasonally quieter first half to June was at the ‘top end’ of expectations, with sales apparently burgeoning by 80% to €7.25m (£4.9m) and Velti, which floated on AIM in May 2006, maintaining its margins throughout.

Fast establishing itself as a technology leader in the field of mobile marketing and advertising, the company enjoyed growth from mobile operator projects in the UK and South East Europe, where contracts were renewed with the likes of Vodafone and WIND, as well as advertising agency and consumer brands work in the US and the UK (where a strategic co-operation is now in place with Orange).

Alongside the update the creation of a 50/50 joint venture called Ansible alongside advertising and marketing services giant Interpublic was announced. Interpublic looks an ideal partner for the joint venture, since the market for mobile advertising and marketing is predicted to grow exponentially with advertising agencies set to play a pivotal role in the growth.

Already profitable at float, Velti more than doubled profits from £750,000 to £1.84m in 2006 on sales up 122% to £7.37m. Forecasts in the market for the current year point to pre-tax profits growth to £3.2m, from a top line £11.5m, leaving Velti exceptionally placed to hit its numbers with the stronger second half to come. Given the unpredictable nature of stock markets, an element of prudent profit taking is now in order though there’s further growth to come.

Velti	AIM	£47.06m	139.50p	0.00p
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