IDG13 Oct 2009 08:08
Broker valuation
The uncertain banking climate and the difficult economic environment for advertising has delayed any breakthrough the black for i-design, which runs third-party advertising on cash machines.
So Arbuthnot, the AIM listed company’s broker, which has been forecasting breakeven in 2008-09 is now predicting a ore-tax loss of £300,000. But the company remains confident of further growth after doubling revenues to £2m last year.
It had £1.6m of net cash at the year-end and described continuing talks with potential new customers as ‘positive’. Companies as diverse as Vodafone and Nestle are advertising on 4,500 machines out of the 12,000 licensed to use the software.
The shares, which were 67p on flotation last year closed at 18,5p yesterday.
Arbuthnot now believes the shares are massively undervalued and has retained its buy recommendation, setting a target price of 32p.