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UPDATE - Porta Communications posts maiden profit

UPDATE - Porta Communications posts maiden profit

---ADDS BROKER COMMENT---

Porta (LON:PTCM), the marketing and communications specialist, enjoyed a transformational six months – a period in which revenues doubled and the group posted a maiden profit.

Chief executive David Wright said the financial breakthrough reflected the growing maturity of the company’s start-up operations alongside its successful expansion overseas.

“Organic growth is expected to be strong in the second half while the management team are looking to build critical mass in all the operational areas by selective quality acquisitions," he added.

Turnover rose to £16.1mln from £8.48mln a year earlier, while Porta posted earnings before interest, tax, depreciation and amortisation (EBITDA) of just over £1mln, compared with a loss of the same magnitude 12 months ago. The pre-tax profit for the six months ended June was a little more modest at £71,000.

“Given the improvement expected on the advertising side together with continuing strong organic growth in the public relations businesses both in the UK and overseas, the board remain optimistic about the group's future prospects,” Wright added.

The broker N+1 Singer expects Porta to post full-year sales of £36.8mln, giving EBITDA of £2.7mln and adjusted pre-tax profit of £1.7mln, with revenues and EBITDA growing to £45.4mln and £2.9mln respectively in 2015.

“Porta has again delivered strong growth in revenue and gross profit (a proxy for fee  income), as it continues to see the fruits of its investment. For the first time a material level of profitability has also been delivered,” said analyst Johnathan Barrett.

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