23rd Oct 2014 07:30
LONDON (Alliance News) - Shares in Porta Communications PLC rose early Thursday after the company said trading in the third quarter was strong, with all of its operating units hitting targets, and it is in talks about possible acquisitions that could further boost profitability.
The group's Newgate Communications business in the UK won 15 new clients and projects in the quarter, while its Redleaf PR arm, acquired in April this year, is trading ahead of budget with a regular flow of new business, it said.
Newgate Australia has been its strongest overseas performer, Porta said, with both its Singapore and Hong Kong offices trading profitably in competitive markets.
Its 21:12 advertising agency has been profitable for the past two months and its TTMV agency is now operating with a lower cost base and is expected to post a strong fourth quarter on the back of recent contract wins.
Porta also said it is in advanced talks on two potential acquisitions which, if completed, are expected to have an impact on both its trading and profitability levels.
"We are encouraged by the current trading and pipeline in each of the business units. We are seeking to conclude the acquisitions before the year end and we expect them to have a material positive impact on the profitability of the business in 2015," said Porta Chief Executive David Wright.
Porta shares were among the best performers on the AIM All-Share at the open, rising 15.3% to 8.9375 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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