Shares in (IDG.L) i-design Group PLC, the folks behind atmAD are ‘massively undervalued’ so says the broker Arbuthnot and repeated in a short article in this weekend’s FT by David Blackwell…
ATMs contribute to advertiser’s cash pile
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.
i-design Group PLC’s problem, like nearly all the AIM listed DOOH related companies (in fact, scratch that, like ‘nearly all AIM listed companies’) is that they do not work hard enough on leveraging their brand (in this case, how many investors would know that atmAD effectively equates to IDG.L), doing any sort of long term PR with the right people and simply NOT doing enough sales and marketing.
Who in the industry would have known that (ASG.L) Avanti Screenmedia Group PLC issued preliminary results and a funding update last week and when was the last time you heard from ADW, IME, SCT, VMG etc.
Many of these companies, though we feel not IDG in this instance (as they seem to have a nice niche going for them AND some great staff) deserve their stock price to be in the doldrums.