Employee performance and motivation group Motivcom has announced a 22% jump in pre-tax profits to £3.3m for the year to December 2007. Building resilience through diversification, the group made three acquisitions in 2007, including £15m Zibrant, a provider of venue-finding, event management and motivation services with an impressive blue-chip client base.

Internal product development continues in parallel with this acquisitions programme, with employee reward-card scheme Spree Flex growing rapidly and making a good contribution to operating profit growth. Annual revenues made a steady climb from £76m to £85m with the company’s ‘motivational’ products providing nigh on half this. Events and promotions added the rest. Basic earnings increased 18% to 8.9p per share and the company will pay a final dividend of 1.5p, making for a total of 2p for the year.

Chairman Colin Lloyd says businesses’ need to retain motivated staff is behind Motivcom’s progress and believes the company is well placed to brave an economic downturn, especially as advertisers move from above-the-line to its more promotional activities. In 2008, it is projected that absenteeism (de-motivation), will cost the UK £15bn and in the current challenging economic environment, where galloping costs are being reined in tightly, Motivcom believes it is well placed.

With heavy selling of shares in December, the price tumbled from 150p to around present levels where it has stabilised. Looking well balanced for future growth, Motivcom is forecast by house broker Numis to expand earnings 34% to 11.6p per share. If you failed to take profits at last year’s peaks, sit tight.

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Motivcom	AIM	£24.17m	83.00p	0.00p
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