The marketing collective's revenue growth is rising as investment is ramped up, but investors wary.
Companies: Be Heard Group
Be Heard (lON: BHRD) has released its half-year results for H1 17, detailing the results of the Group's number of businesses.
Gross Revenue grew from £14.7m in the first half of 2016 to £16m in H1 17, due mainly to organic growth from the Group's agenda21 and MMT Digital companies.
Kameleon, the Group's content agency had a difficult first half due to an incapacitated COO and the snap election, both affecting activity at the agency.
Be Heard also heavily invested in two of the Group's companies which impacted profit margins in the first half of the year, however, Management expects H2 margins to be "considerably above the first half" the statement said.
Executive Chairman Peter Scott commented on the interims, saying:
"Current visibility on revenues and progress underpins the Board's confidence that the Group will deliver full year results in line with market expectations and strong run-rate profitability by the year end. Since our listing in November 2015 we have acquired four exceptionally-talented businesses and continue to explore opportunities to broaden our offering to clients."
Shares are down around 3% this morning with the release of the results.
Since the Group's IPO Gross Revenue (or Billings) grew from £2m in 2015 to £29m last year, with the strategic acquisitions of the four companies obviously impacting the Group's short term profit margins. The marketing collective currently trades at a PE ratio of 13x, slightly less than the industry median of 14x, with a market cap of £25m.
Today's share price of 3p is not far off the Group's lowest trading point of 2.7p in July this year.
