In a note to clients following a “speed dating” lunch with the management of five companies not under its normal coverage, analyst Johnathan Barrett concluded that Be Heard is: “An attractively positioned mid-size group is likely to draw a lot of attention from the larger global mega-agencies that are highly acquisitive.”
He pointed out that the group’s “experienced management team is building a modern focused digital marketing services group operating at the crucial intersection between marketing, technology and e-commerce.”
The analyst said: “This is perhaps the most difficult, but important area for many businesses seeking to effectively market and sell products.”
Expects added scale …
He added: “So far Be Heard has bought specialists in the consumer experience/e-commerce, data analytics, digital media planning/buying and content creation.
“Cross-selling has already taken off as the key services are offered as integrated solutions. We expect more services to be added to scale the group and exploit the huge opportunity.”
Barrett concluded: “Be Heard should be able to grow faster than average given its business mix. Further enhancement of the proposition(s) should make this level of growth stronger and more sustainable.”
The analyst also provided bullish estimates for Be Heard’s results over the next few years, forecasting adjusted pretax profit of £2.6mln for full-year 2017, up from £0.7mln in 2016, on revenues of £19.5mln, up from £9.5mln.
For full-year 3018, the analyst estimates adjusted pretax profit rising to £2.7mln on revenues of £22.0mln.
Reverse debut …
Be Heard made its debut on AIM back in November following a reverse into Mithril Capital.
The shares were steady in morning trading today at 3.82p having gained around 6% in-the year-to-date.
Earlier this month, broker Dowgate Capital repeated a ‘buy’ rating on Be Heard shares with a price target of 5.2p.
Dowgate’s analysts reckoned that Be Heard has everything in place to be a success on the junior market.