www.smartfocus.com
smartFOCUS Group PLC (LSE:STF) is the creator of train of thought analysis, intelligent marketing software and leading edge digital marketing services that give highly intuitive email, RSS, SMS and microsite capability.
* Everything we offer is designed with marketing in mind
* Our company is built on both marketing experience and technical expertise
* We develop and support our own technology
Headquartered in the UK, we operate globally from offices in Europe, Asia and the US – including our specialist US News & Media subsidiary smartFOCUS Astech. As well as high profile media brands our clients include leading financial services, telecoms, retail, utilities, travel and online gaming companies.
SmartFOCUS on track to beat 2010 expectations
SmartFOCUS Group (LON:STF) is set to beat expectations for full year 2010 as trading has been strong since the end of the first half and the sales pipeline continued growing.
Shares in smartFOCUS climbed 6.3% in early dealings, reaching 16.75 pence.
The interim report covering the period to 30 June that was released a month ago showed a 17% jump in revenues to £6.6 million, while pre-tax profits doubled to £0.31 million and earnings per share improved from 0.11 pence to 0.21 pence. Recurring revenues and renewal rates reached 63% and 90% respectively.
SmartFOCUS won contracts with over 30 customers is the period, including significant new contracts with lastminute.com, Expedia, Morgan Stanley (NYSE:MS) and PartyGaming (LON:PRTY).
The post-period performance was boosted by two major client wins in September, further solidifying an already strong client base. Mid-month, smartFOCUS announced that retail phenomenon The White Company contracted its software to “increase customer insight and improve the flexibility of its marketing campaigns”.
This was followed by a contract win from escorted tour operator Page & Moy Travel Group.
The firm’s clients include well-known brands such as Easyjet (LON:EZJ), Harrods, Hilton, Manchester United, Rabobank, Société Générale (Euronext:GLE) and Sony (NYSE:SNE). In total it has more than 700 clients around the world.
It was then reported that 2010 revenues visibility has risen 88% at the end of August.
In full year 2009, smartFOCUS made a pre-tax profit of £490,000 on revenues that had improved 14.7% year-on-year to £11.9 million.
The stock might look increasingly attractive in light of the M&A activity in the software sector, which was noted by Arbuthnot Securities.
The broker referenced IBM’s (NYSE:IBM) US$480 million bid for Unica Corporation (NASDAQ:UNCA), which is 4x the enterprise marketing management specialist’s 2010 forecast revenues.
According to Arbuthnot, this made smartFOCUS look compelling value on a 0.6x EV (enterprise value)/sales multiple for the corresponding period.
The company has simultaneously announced the departure of its chief executive of 12 years, Chris Underhill, who will remain with smartFOCUS as non-executive director until 31 December to assist chairman Chris Gater in the search of a replacement.
According to smartFOCUS, Underhill has decided to “pursue other business interests”. He said that now is the time for the company to “bring in new leadership that can build on its success for the future”.
“(Underhill) is leaving the company with a strong and consistent financial performance as recently reported in its interim statement and reflected in today's trading update,” said Gater.
SmartFOCUS is a business software developer that supplies ‘intelligent marketing’ systems that aim to deliver relevant, personalised and timely communications to a brand’s customers through different channels, e.g. print, e-mail, mobile phones and the Web.
