Fast-growing marketing services and communications play Media Square marched in with excellent annual numbers to October and says it will consider a maiden dividend at the interim stage in June.

Profit before tax burgeoned almost six-fold to £1.5m – profits pre-goodwill and exceptionals were higher still at £1.68m – all on a 134% sales rise to £19.5m. Jeremy Middleton, chief executive, said strong leaps in sales and profits, coupled with last year's six acquisitions, have built a cash-generative business with a strong balance sheet and 'significant' asset backing. Media Square spent £31m on those six businesses, including £23m for AIM-listed retail communications play Coutts, and future deals are likely to be proportionately larger. Those six brought more than £47m of annualised sales into the group. Each acquisition has added to profitability, service proposition and reach. Middleton says the current year has started well, with 'notable' new client wins across the group. For 2005, Corporate Synergy's Simon Lapthorne forecasts a jump in normalised PBT to £4.6m, giving earnings of 1.85p and a forward multiple of 15.1 times, which 'still looks too low' versus peers, according to Lapthorne. A quality operation. Buy.

Media Square	AIM	£4.51m	14.00p	0.00p
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