10/05/2002
Investors that have kept faith with Stream, the provider of a range of information, content and telecommunication services, might, at long last, be able to reap some rewards. The group, which launched onto Aim last spring at 28p, has witnessed its shares fall all the way to 8p due to the dissappointing performance of its telecom business last year and a subsequent profits warning. In the end, its full year results to December 2001 showed turnover up 57% to £6.8m but losses before tax of £1.3m (£0.8m). Since the difficulties, which chief executive Gordon Robson blames on the 'slow take-off' of the more advanced mobile telephone market, the group has focussed a lot of its energies on its 'Stream Live Services' and curtailed its telecoms activity. This change 'has delivered' as Robson says the group actually moved into profits faster than anticipated. Another positive signal was a recent move into the Australian market. For the full year, house broker Teather & Greenwood is expecting profits in the region of £140,000, rising to £700,000 in 2003. Of the £3.6m raised on admission to Aim, around £1.6m was in the company coffers as at December. Speculative buy.
| Market cap: | £8.5m |
| PE Forecast: | 50 |
| Share price: | 15p |
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