IPPlus, a customer contact specialist, released their Interim Financial Results (ending 31 December 2015) and caused their share price to rise 8.47%. They reported a pre-tax gain of £116,993 as apposed to a loss of £116,917 last year. This is because of a recent, major contract with a client in a division of IPPlus – Ansaback. As a result, Revenue has increased to £4,055,716 from last year’s, £3,374,240. These are promising results as IPPlus jumps back into a gain in pre-tax profits.
Companies gaining contracts is typically a good thing. Last year a contract finished which is what caused the losses. With new client and contract, the prospects of the company could improve.
Although, some of you may have noticed that the companies market capitalisation is 5.05m. This is certainly not very high, and can this can make a company illiquid. Smaller companies also don’t have as much of a foothold in the market although, IPPlus says, ‘Our client portfolio is extremely prestigious’. This of course could be slightly biased since IPPlus keeps their clients anonymous.
IPPlus is a fairly small buisness and they could move more drastically. This company, though, has released a good report and the contract is paying off, as we can see. There is some risk investing in companies like these, but it might worth it.
Written On 22/02/2016 Closing Price – £0.16