Motivcom disappoints as corporate budgets remain tight

Results for 2013 were lower than expected for Motivcom, the employee benefits and loyalty group, as pressure on corporate budgets meant promotions and events divisions both endured plummeting profits.Gross profit fell 2% to £29.3m, but operating profits plus amortisation and impairments rose 5% to £4.3m.With net cash better than forecast at £6.4m, the board lifted the dividend 20% to 5.4p in a sign of confidence for the future.Looking to the upside, Chairman Colin Lloyd said: "The group continues to make good progress on its stated five year strategy, with the Motivation division performing particularly well, increasing headline operating profit by 72%, and the Employee Benefits market also seeing uplift during the period, particularly in the SME sector." He added that the board was "cautiously optimistic" about prospects, assuming no material change to the economic environment.Looking into 2014, house broker Numis lowered its earnings forecasts and said it expected another good year from the Motivation arm and believe Events "will be stable", while Promotions "has scope for recovery".Shares in Motivcom were down 10.1% to 141.5p ay 15:50 on Thursday. OH