Motivcom benefits as clients seek staff retention incentives

Motivcom, the AIM listed incentives and marketing consultancy, has justified its much improved share price reported here yesterday (see Share price recovery exposes the weak) by announcing a 47.5% improvement in post-tax profits for 2009 as clients placed emphasis on staff retention incentives as well as customer loyalty schemes.


All three divisions – incentives, sales promotion and events – reported improved operating profits, resulting in a post-tax group profit for the year of £2.2 million compared with £1.5 million in 2008.  And, unlike many of its peer group, there were no exceptional redundancy, asset impairment or other reorganisation costs to damage profits.


 


The growth was achieved despite a slight fall in gross income, helped by a near 9% reduction in operating costs – proof, if ever required, of the bottom line benefit to be derived from such savings.  As a result, the group’s operating profit margin improved from 11% in 2008 to 14.9% in 2009.


Motivcom also enjoys a sound balance sheet with no net borrowings (net cash was £1.8 million at 31 December 2009) and £18 million of shareholders’ funds.  Current liabilities exceeded readily realisable assets by £1.7 million, but that should not cause investors any significant anxiety given the absence of net borrowings and the overall balance sheet strength.   Whether by accident or design Motivcom made no acquisitions during last year, thereby preserving its resources for more favourable conditions.


© Fintellect Ltd

  • http://twitter.com/brandingplaces Daphné Kakaiya

    Another airport hub that’s up and coming is the Paris-Charles de Gaulle Hubstart Paris initiative: http://brandingplaces.com/competitiveness/a-collective-approach-to-promoting-the-paris-roissy-charles-de-gaulle-airport-area/

  • John Scarrott

    A good article. I wonder what ‘commercially focused’ means? I suspect it has a very individual meaning for each client as they write their brief. In itself the phrase is quite banal but when you ask a client to elaborate ‘What does commercially focused look like? How would you know that the idea we had come up with was commercially focused in the way you want? or What does commercially focused mean to you?’ you unlock the opportunity to listen to what your client needs going forward. I’ve written 2 pieces recently on this theme which I’ve coined the Paradox of Commercial Creativity and the Paradox of Creative Commerciality. There’s a 3rd one on out Monday which is the Paradox of Knowledge. here’s the link to my Blog if you’d like to have a read: http://www.dba.org.uk/blog/dba.asp#.Ujw7KRxiC8C

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