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Interactive World - Operating margins of 46.7%

October 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ITW
  • Price:
  • 90p
The shares moved higher after Interactive announced its results for the year to 31 July. The company actively continues to look for acquisitions though none were completed in the period. Hence turnover was only up 2% to £9.1m. Pretax profit grew 37% to £4.3m for eps of 7.7p. The big money spinner continues to be monetising of the celebrity and adult content produced by the Sport Newspapers under its exclusive five year rolling contract. The nature of its content continues to titillate a subset of the population which is part of the reason why Interactive has been the only company in its quoted peer group to not warn on profits. That said, the year saw a further decline on the internet side from £2.8m to £ ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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