Electric Word

Niche business-to-business publisher Electric Word (EW) is demonstrating resilience to the tough economic conditions facing the media and marketing industries by growing sales and successfully integrating acquisitions.

Providing subscription newsletters, magazines, websites, events, books, special reports and bespoke research for the education and sport sectors, Electric Word recently reported a ‘positive’ start to the year in both its markets. Chief executive Julian Turner said Speechmark, the publisher for speech therapists and special educational needs professionals acquired in October for £2m, has integrated well and will boost annual profits.

Moreover, Turner expects that MyChild, the currently loss-making magazine for parents in which Electric Word has a 50.1% stake, will be turned around shortly, helping to grow profits further. The company’s first foray into the consumer market, MyChild is already ‘fully demonstrating the growth potential that it was acquired for and represents a significant opportunity for internal investment to drive future profits’.

Electric Word’s most recent results, for the year to November, revealed the benefits of a restructuring in 2006, with sales surpassing expectations at £13.5m (2006: £10.7m) and pre-exceptional profits rising by 40% to £1.4m. This year, house broker Panmure Gordon forecasts revenue and profits growth to £17.4m and £1.8m respectively, which should send earnings 29% higher to 0.9p.

While valuations in the sector are currently in the doldrums, Electric Word, trading on a prospective multiple of just 6.5 times, has appeal due to its niche products and consistent track record of growth and astute acquisitions.

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