22nd Jan 2008 07:01
Motivcom PLC22 January 2008 Press Release 22 January 2008 Motivcom plc ("Motivcom" or "the Company") Operational update Motivcom plc (AIM:MCM), a leading provider of a range of business services toassist major blue chip corporate clients to win and retain customers whilstincentivising and retaining employees, is pleased to provide the followingoperational update and summary of substantial development initiatives. The Company believes that, together, these provide Motivcom with a strongplatform for future growth during 2008 and beyond. Spree & SpreeFlex pre-paid cards Unveiled in 2006, these pre-paid cards operate on both Visa and MasterCardplatforms in magnetic strip and Chip & PIN formats. Spree delivers a rewardmedia for the incentive market place while SpreeFlex provides employers with acorporate branded card that encourages employee loyalty by delivering savingswhen shopping at a wide range of leading high street retailers. 20 new card programmes have now been launched bringing 16 new clients to thebusiness. Entice Benefits Entice, announced in November 2006, delivers a new online concept in customerincentive, loyalty and affinity. With over 150 benefits covering all ageranges, demographics and lifestyles, Entice allows businesses to launch theirown bespoke retention and acquisition programme quickly and at low cost. During 2007 Entice has exceeded all initial internal targets and has securedfour major blue chip clients with a combined membership of 2 million newcustomers. Entice has a high client retention rate with new benefits anddevelopments in technology making the product a positive tool as part of overallcustomer relationship management. The Company believes the pipeline for 2008 is looking healthy, with more clientsplanning to launch schemes during the course of the year, as companies realisethe benefit of retaining and adding value to their existing customer propositionat low cost. Filmology In March 2007 the Sales Promotion division announced the launch of Filmology, anew dedicated movie marketing and promotions vehicle. In the remainder of 2007 exclusive agreements with four of the largest five UKcinema partners were secured and new supply partners were established to allowexpansion into web and SMS based cinema promotions. Gross revenues from cinema promotions have doubled year on year, and theeffectiveness of such campaigns is illustrated by repeat custom from blue chipbrands. Bulk ticket sales were increased by over fifty percent and the Companyhas made initial moves into a new market by conducting its first licensedpromotion, utilising specific movie titles. Greentravel2work(TM) In early August 2007 Employee Benefits division introduced tax free bus travelthrough its Greentravel2work(TM) scheme to appeal to the 2.8 million commuters who travel to work daily on the bus. This solution has proven to be of greatinterest to the wide range of UK businesses seeking to provide additionalsubstance to their CSR (Corporate Social Responsibility) programmes. During 2007, three schemes were launched in Nottingham, Portsmouth and Leicesterand the Company has tax approval for a scheme in Derby. It is a popular greeninitiative with private and public sector clients and 10 further schemes will belaunched before the end of April 2008 to over 100,000 employees. Motivcom hasidentified a further 20 target schemes to be launched during 2008. These clients are predominantly new additions that add to Motivcom's clientbase. The Company will look to leverage further opportunities within thisexisting portfolio. Motivcom remains the sole provider of an end-to-end employer/employee solutionfor this product in the UK. MTM acquisition In late August 2007 Motivcom announced that it completed the acquisition ofMotivation Travel Management Limited ("MTM"). Within 6 weeks MTM wassuccessfully merged and integrated with subsidary Archer Young to form AYMTM.The new business is performing as planned from new premises in Amersham,Buckinghamshire, and further synergies are expected from the combined businessduring 2008. Zibrant acquisition On November 12 2007 the Company announced the acquisition of Zibrant. Voteddeal of the month by Business XL Magazine and shortlisted for Deal of the Yearin the forthcoming Quoted Company Awards, this £15 million deal was funded by acombination of debt, vendor share purchase and a share placing. Thistransformational deal has delivered a substantial foothold in the venue findarena and further diversification into this business services area as well asadding strength in incentive travel, event management and live communications.The addition of a high quality client list and a skilled and enthusiasticmanagement team provides further opportunities for cross selling across theCompany. ProTravel acquisition On November 16 2007, Motivcom announced the acquisition of Protravel whichspecialises in providing travel and entertainment related promotional solutionsto leading sales promotion agencies and FMCG brands. This business was fullyintegrated into the Sales Promotion division prior to Christmas 2007 and plannedsynergies are now delivering into 2008. According to the latest IPA Bellwether Report, the quarterly survey of marketingspend from the industry body and professional institute for advertising, mediaand marketing agencies in the UK, this area of the business benefits from beingone of the few media sectors to experience sustained growth during Q4 2007 andinto 2008. Overview The Company believes Motivcom continues to provide a varied and robust range ofbusiness services to its clients and this diversity offers substantialresilience to economic cycles as well as a platform for sustained growth. - Ends - For further information:Motivcom plcSue Hocken Tel: +44 (0) 1908 608 [email protected] www.motivcom.com Grant ThorntonPhilip Secrett / Fiona Owen Tel: +44 (0)207 383 [email protected] / [email protected] www.gtuk.com Media enquiries:AbchurchHeather Salmond / Gareth Mead Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Notes to Editors: Motivcom plc is a leading provider of a range of business services to assistmajor blue chip corporate clients to win and retain customers whilstincentivising and retaining employees. Motivcom maximises the performance ofapproximately 600 clients through motivation, communication and sales promotionservices which drive improved staff productivity and sales, whilst providingcost savings through better staff retention and reduced absenteeism. Motivcom is cash generative, profitable and has a strong, progressive dividendpolicy. The diversity of its services underpins a robust business model that isresilient to economic cycles. The management team has delivered 35%year-on-year growth as a public company following a strong organic andcomplementary acquisitive growth strategy. Motivcom plc is based in Milton Keynes, UK. It joined the AiM market of theLondon Stock Exchange in August 2004 under the name P&MM Group plc and wasre-named Motivcom plc (AIM: MCM) in March 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MCM.L