WEARE 2020 pondering divis as recovery quickens

WEARE 2020, the media group formerly known as Digital Marketing, said it has returned to underlying growth after a very difficult period.

Revenue in the six months to September 30th may have dipped to £18.59m from £22.49m at the interim stage last year, but profit before tax jumped 69% to £1.01m from £0.59m last year.

Diluted earnings per share almost tripled to 1.02p from 0.42p the year before.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"Although our gross profits are down as a result of our decision to close our contact centre in Nottingham, our operating performance has been positive in the other areas of our business, especially Jaywing within our Dialogue business," revealed company chairman, Stephen Davidson.

The company said £1.8m of the £2.6m decline (to £15.25m) in gross profit from last year was due to the closure of the Nottingham contact centre, after the centre lost its main client contract.

Net debt tumbled to £4.3m at the end of September from £6.1m 12 months earlier, even after paying off deferred consideration for acquisitions, and the company still has £3.2m of undrawn banking facilities.

"Notwithstanding major concerns about the macroeconomic outlook, the board believe that growth can be maintained for each of the divisions in the group and are confident about achieving management expectations for the full year," Davidson added.

The board intends to consider the initiation of dividend payments in the next financial year.

The shares rose 0.75p to 17p on the figures.

--

jh