£1.30 target.4 Dec 2013 09:13
SyQic provides access, predominantly via mobile devices, to over 70 live television channels and to over 20,000 titles of online video on demand content. As such, the Company is a clear beneficiary of the trend to watch media away from the traditional household television set. Customer access to date been restricted to distribution relationships with major Telco operators but shortly an OTT version of the service will be launched which will allow access to anyone with internet access. The Company raised £3.2m in an over subscribed IPO (£2.45m new money, £0.75m vendor placing), the funds will be used to increase the content offering and launch in new regions. SyQic has been profitable since inception and is forecast to make profit after tax of £0.85m in 2013 rising to £2.0m in 2014. We feel a 2014 PE ratio of 15x is justified for a company with SyQic’s financial profile and market positioning which would imply a fair value of 130p. (MB)