Ebiquity

Although currency fluctuations encumbered its interim results, media intelligence agency Ebiquity says international expansion holds the key to its growth.

Group sales climbed 8% above previous comparatives for the six months to October to £9.3m. However, a 32% increase in underlying profits to £984,000 was dragged down to £202,000 at the pre-tax line by foreign exchange movements.

Much of the growth has come from international assignments, which now account for 36% of revenues, and the growth of the new US business. Chief executive Michael Greenlees says expansion is being aided by UK clients increasingly looking abroad to make up for domestic doldrums and that ‘North America has got to a tipping point – we’re seeing some significant growth there’.

As Ebiquity’s well-respected software and systems dominate the UK market for media analytics – which makes up three quarters of group sales – there is not much more growth to pursue there. The recent opening of a French office shows the intent and, says advertising industry veteran Greenlees, followers should ‘expect to see more developments’.

He explains that the company is also sharpening up its digital offering with a new product to help advertisers better monitor fast-growing facets of media such as social networking sites. This, and a fast-growing news monitoring service, should help compensate for a softening in advertising-monitoring renewals in Ebiquity's smaller Platform division, where revenues slipped 10%.

Forecast by house broker Numis to make £2.3m of pre-tax profits and 4.9p earnings per share in the full year, Ebiquity represents a lower-risk route of investing in media. Up 92% since a recommendation here in October 2008, the shares should advance further. Add.