Interim Results for Six Months Ending 29-Feb-2008
19 May 2008
2ergo is a leading provider of convergent mobile solutions in three key areas: business, entertainment and marketing. The Group’s technological expertise and innovative approach has led it to partner with some of the world’s most respected brands, across a broad range of sectors.
Through industry-leading products and solutions, 2ergo enables organisations to leverage the power of the mobile channel, imparting knowledge and insight to deliver results that directly enhance the bottom line.
The Group is pleased to announce interim results for the six months ended 29 February 2008.
| Six months to February 2008 | Six months to February 2007 | % Change |
| £'000 | £'000 | |
Turnover | 17,829 | 15,711 | +13% |
Gross Profit | 4,580 | 4,059 | +13% |
Operating Profit | 1,266 | 1,124 | +13% |
Adjusted Pre-tax Profit (1) Pre-tax profit | 1,906 1,490 | 1,587 1,213 | +20% +23% |
Basic earnings per share (2) Adjusted earnings per share (1)(2) | 3.80p 5.22p | 3.84p 5.21p | -1% +0% |
| | | |
(1) figures stated pre amortisation | | | |
(2) EPS reduction due to 14% tax rate in 2007 - 25% in 2008 | | | |
Turnover up 13% to £17.8 million (2007: £15.7 million
Increase in gross profit of 13% to £4.6 million (2007: £4.1 million), with gross margins maintained at 26%
Adjusted pre-tax profit up 20% to £1.9 million (2007: £1.6 million
Strengthening of Operational Board
Five year deal with O2 secured in period
Investment in formal Business Partner Programme
Barry Sharples, Joint Chief Executive of 2ergo, commented:“We are pleased to announce another strong period of growth, which is demonstrated by solid financial results, the launch of further new services for clients, and significant progress in strengthening the operational board and management team in readiness for the next phase of expansion.
“Launched during the period, 2ergo’s MultiSend product suite has already attracted considerable attention from major brands seeking the very latest interactive mobile technology to power their marketing and customer relationship management programmes. Most notably, the Board was particularly pleased to report a five year contract with O2, who now use MultiSend to engage with over 17 million customers.
“With more and more organisations now recognising the potential of the mobile channel the decision to launch 2ergo’s Business Partner Programme is proving to be the right one. This strategic initiative is helping to broaden and evolve the Group’s routes to market, providing greater access to potential customers via an indirect sales force.
“The mobile industry continues to be one of the fastest developing sectors in the world, with industry analysts forecasting significant growth across all the markets in which we operate. The Board is confident that the Group is well placed to maintain its leading position as a provider of convergent mobile communications and looks forward to capitalising on the broader opportunities these conditions will bring.”
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For further information, please contact:
2ergo Group plc +44 (0)1706 221 777
Neale Graham, Joint CEO
Barry Sharples, Joint CEO
Jill Collighan, Finance Director
Tavistock Communications +44 (0)20 7920 3150
Lulu Bridges / Andrew Dunn
Numis Securities Limited +44 (0)20 7260 1000
David Poutney / Stuart Skinner
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