Employee motivation group Motivcom believes its diverse offering presents ‘substantial resilience to economic cycles as well as a platform for sustained growth’.

After completing acquisitions of travel promotion businesses MTM for £860,000 and Protravel for £1.2m, as well as the long-promised larger deal buying events group Zibrant for £15m, Milton Keynes-based Motivcom reached a market valuation of about £50m. However, December saw the stock sold off heavily with the price tumbling from above 150p to 90p in a fierce bout of profit-taking.

The company has since updated the market, saying all the new businesses have now integrated, with synergies and cross-selling already materialising. The existing businesses are going great guns as well, with numerous prospects across the board.

Motivcom's employee reward-card scheme Spree-Flex has won 16 new clients since launch; customer-incentive programme Entice has exceeded management targets, added four blue-chip customers and enjoys a bulging pipeline for 2008; cinema promotion revenues have doubled, with four of the largest UK cinema partners secured; and finally, 14 tax-effective Greentravel2work schemes are expected to be added by the end of April, bringing in new clients which the company can cross-sell to.

Trading for just over ten times forecast full year earnings, which are in turn expected to grow impressively in the following 12 months, the shares represent good value. What is more, if the economy slows, employers will need Motivcom’s services more than ever. With the shares oversold, existing backers should top up their holdings.

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Motivcom	AIM	£11.65m	40.00p	0.00p
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