Direct marketing and MR group TMN has made a post-tax loss of £476k for the first six months of the financial year, compared with a profit of nearly £1m a year previously. Revenue at its online research subsidiaries iD Factor and ICD climbed 30% from the year-earlier figure, while group turnover rose 72% to £15.5m.
The two online MR firms are currently in the process of opening new offices in the US and Australia, and have plans to launch in Ireland, India, the Netherlands and Spain in early 2009. In TMN's end-of-year results announced in September, research revenue rose 42.5% to £2.7m, from £1.9m in 2007.
Gross profit increased by 40% to £6.7m (2007: £4.8m), although gross profit margin was 43% (2007: 54%) which the firm says reflects the change in revenue mix. E-mail marketing and finance advertising revenues both fell substantially.
Since the beginning of the period, the group has reduced its operating cost base and expenditure by £1m on an annualised basis, which it says will have a 'material impact' in the second half of the current financial year, although there will be a one off restructuring cost of around £0.3m.
CEO Mark Smith comments: 'Our enhanced scale based on five business channels - affiliate marketing, e-mail marketing, publishing, lead generation and online research - as well as the continued demand for online marketing, enables us to be cautiously confident about the second half when the group traditionally is stronger.'
TMN shares fell from 12.5p yesterday to 8p by mid-morning today. A year ago the shares were worth around 46p.
Web sites: www.tmnplc.com , www.theidfactor.com and www.icd-research.com .
All articles 2006-21 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.