Imagesound Results Hit A Flat Note

Adrian J Cotterill, Editor-in-Chief

If you are an AIM listed company and you are not flavour of the month, no news at all or just slightly bad news can mean that your poor old stock price takes a complete hammering and such was the case with Imagesound last Monday 3rd March.

The funny thing is that, Imagesound are not a bad company, they have lots of great brands as customers (geographically dispersed as well), generally well thought of as a company, they are not a one product company, have revenue coming from several industry sectors and whilst they have let some good managers slip through their fingers the folks at the helm of the business are strong individuals with proven track records.

Imagesound for example, will also feature highly in our forthcoming Top 10 Music Providers list.

LONDON (SHARECAST) – The share price of in-store background music provider Imagesound hit a 52-week low after the company saw pre-tax losses widen.

Pre-tax losses for 2007 worsened to UK PDS 1.1m from a loss of UK PDS 0.77m in 2006. The company preferred to emphasise the profit before tax figure excluding amortisation and non-recurring costs, which showed a profit of UK PDS 1m compared with a profit on the same basis of UK PDS 0.6m in 2006.

Non-recurring expenditure in 2007 was UK PDS 0.59m compared to UK PDS 0.1m in 2006, and included the cost of integrating new acquisition TSC Music Systems, the closure of the Waterfront Studio and redundancy costs.

Revenue rose to UK PDS 8.8m from UK PDS 8.2m, with recurring revenue improving 10% to UK PDS 5.6m, compared with UK PDS 5.1m. Contract renewals now account for around 64% of total revenues.

There is a more underlying problem with those Digital Out Of Home companies that are listed on the UK’s Alternative Investment Market (AIM) which is something we will be exploring in more detail next week when we will be releasing a report on how DOOH stocks on AIM have fared over the last 6 months (it makes grim reading I am afraid) but there are lessons to be learned from that (which we will of course also share with you).

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