One Media Publishing

Digital music label-to-rights owner One Media Publishing (PLUS:OMPP) has issued a solid set of interim results, and rewarded shareholders with a maiden dividend.

Founded in 2006, the Pinewood Studios-based outfit enjoyed a 45% surge in pre-tax profits to £151,123 for the six months to April, as sales edged 9% higher to £635,713. During the period it also bought in and cancelled 52% of its shares, following the collapse of a broker – a move that has proved significantly earnings enhancing.

One Media has thrived due to the ongoing shift in buying patterns, which has moved consumers from the high street to online purchasing. It has a catalogue of more than 120,000 music tracks spanning well-known artists such as Dionne Warwick, Pavarotti, Tony Christie and Fat Boy Slim.

It distributes its music through digital download and streaming stores such as iTunes, Spotify and Amazon – in fact, One Media now has 300 stores marketing its music. As new content is acquired it is pushed through the existing infrastructure, thereby boosting margins. Current trading is good, but the PLUS-listed firm has suffered, as some customers using traditional CDs have witnessed a fall in demand.

Broker Hybridan predicts 2011 sales of £1.4 million, pre-tax profits of £299,400 and EPS of 0.43p, rising to £1.7 million, £424,900 and 0.7p respectively in 2012. One Media is keen to complete an acquisition, which may lead to a move to AIM. Led by entrepreneur Michael Infante, and operating in an attractive market, the shares have further to run.