22/10/2007
i-design, listed on AIM alongside a £3.5m placing at 67p in July, is the venture behind a technology and media sales solution known as ‘ATM:ad’ that allows banks to generate new sales from advertising on their ATM screens and receipts.
Network owners can run both their own campaigns and those of third parties, with advertisements running during the transaction. Customers are reached one-to-one and the solution is measurable, with advertisers able to see how many customers they reach. ‘75% of customers take their money out at a cash point, which means the ATM is a bank’s main point of contact with its customers,’ explains chief executive Ana Stewart, ‘meaning our solution provides a great way for them to generate new revenues.’
Current advertisers include British Airways, Vodafone and Orange, and Stewart insists, ‘We are the only player in this market offering an end-to-end solution, generating all the advertising and the content. Software licence sales are progressing well and in September we secured our third major agreement, with Alliance & Leicester’. Comprising an initial licence fee for use of i-design’s software, the deal includes the exclusive rights for the company to sell third-party advertising space across Alliance & Leicester’s ATM network and ‘more than doubles' the number of ATMs over which i-design has exclusive media sales rights.
Forecasts for September 2007 point to losses of £900,000 from £1m sales. Pre-tax profits aren’t expected until 2009, when an £800,000 swing into the black from £8m sales is forecast. Nevertheless, given high entry barriers, deals in the pipeline and the profit upside for banks, i-design has compelling speculative appeal.
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| Market cap: | £9m |
| PE Forecast: | N/A |
| Share price: | 64p |
| AIM | £2.89m |
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