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XL Media - Upgrading the upgrade

October 2015

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:
  • XLM
  • Price:
  • 73.5p
Following H1 results, broker Liberum set a 103p price target and stated “we haven’t materially adjusted forecasts for now but given the typical seasonal bias to H2, there is an increasing probability of a FY15 earnings ‘beat.’” I’m looking forward to it.As it was, H1 even beat the recent update with sales up 85% to US$36.8m (organic c.20%), adjusted EBITDA +103% to US$12.9m and pretax profit +187% to US$13.2m. The reason the broker hasn’t upgraded is because XLM did in fact struggle to recruit enough staff across R&D, marketing and IT infrastructure to keep up with demand. It therefore experienced some super normal margins. Consequently H1 operating expenses were light and only ahead by ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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