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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Ekay | LSE:EKY | London | Ordinary Share | GB00B0NL6B21 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 6.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:4722W Ekay plc 05 January 2006 Press Release 05 January 2006 Ekay plc ("Ekay" or "the Company") Ekay joins AIM First day of dealings on AIM Ekay plc, the full-service advertising agency targeting the SME sector, today announces Admission and commencement of dealings of its Ordinary shares on AIM. Shore Capital & Corporate Limited is acting as Nominated Adviser and Broker to Ekay. The stock market EPIC is EKY.L. Placing Statistics Placing Price 21.5p Number of Ordinary Shares in issue before the Placing 35,219,450 Number of Ordinary Shares to be placed on behalf of the Company 651,163 Number of Ordinary Shares to be issued in connection with investment 1,162,790 Market capitalisation at the Placing Price on Admission #7,962,181 Number of Ordinary Shares in issue immediately following the Admission 37,033,403 Estimated net proceeds of the Placing receivable by the Company #140,000* Percentage of enlarged ordinary issued share capital subject to 1.76 per cent the Placing EPIC EKY.L * In addition, #250,000 of convertible loan drawn on 25 November 2005 will also convert into new ordinary shares on Admission Reasons for the Placing and Admission Ekay is intending to use the monies raised for working capital purposes. In addition, the AIM admission will enable Ekay to further develop its business, facilitate the next stage of the Company's growth and enable the Company to make strategic acquisitions. Eddie Powell, CEO of Ekay, said: "We are delighted to see the start of dealings in Ekay shares on AIM, and the listing provides us with the opportunity to reach the next stage of growth. We have successfully grown the business in a relatively static market through innovation by providing consistent results for our clients. In the last three years we have seen double digit and profitable growth through targeting the SME market and focusing our services on providing a quantifiable return on investment for its customers." Media planning and buying accounts for 80% of Ekay's turnover and encompasses broadcast, direct marketing, outdoor, online, print and press. In addition, Ekay advises on marketing research and design. The Company also has a strong record of introducing SMEs to advertising mediums, such as broadcast, which have traditionally been the preserve of large budgets and big brands. To this end Ekay has helped SMEs become leading brands and household names through targeted and cost effective advertising strategies that focus on lean budgets, innovation and return on investment. Ekay has a strong management team with considerable experience in the advertising and media industry. Eddie Powell, the founding Director and CEO of Ekay, has worked in advertising sales at Mirror Group for 15 years, specialising in the financial services sector and the agencies that catered for companies in that sector. He founded Ekay advertising in 1994 based on the experience he gained whilst working for the national press. In 1999 he formed Ekay Advertising & Marketing Limited and developed it into its present form. The Board is further strengthened by the recent appointment of Tony Sullivan as a non-executive Chairman. Anthony David Sullivan, 55, has 30 years experience in the advertising and media industry and has represented the interests of the Association of Media Independents on the Council of the Advertising Association. In 1999 Mr Sullivan led the management buy-out of Media Campaign Services and in June 2004 led MCS's acquisition of Squires Robertson Gill. Eddie Powell added: "Tony has considerable experience in media, PLCs and M&A transactions which will be invaluable to our strategy going forward." For further information: Ekay plc Eddie Powell, Chief Executive Officer Tel: +44 (0) 1474 334 343 eddie.powell@ekay.co.uk http://www.ekay.co.uk -------------------------- ------------------------ Shore Capital Tel: +44 (0) 207 408 4090 Guy Peters, Corporate Finance www.shorecap.co.uk guy.peters@shorecap.co.uk ---------------------------- Dru Danford, Corporate Finance dru.danford@shorecap.co.uk Media enquiries: Abchurch Heather Salmond / Ariane Comstive / Franziska Tel: +44 (0) 20 7398 7700 Boehnke www.abchurch-group.com heather.salmond@abchurch-group.com --------------------------------------- -------------------------- Summary Ekay is an advertising and marketing agency which specialises in advising clients on the use of television, national and local press, magazines, the internet, direct mail and posters, for business development purposes. Ekay has particular expertise in direct marketing. Direct marketing uses select media to target a specific audience, with the aim of encouraging a response from the consumer, typically an enquiry for a product or service. An advantage of this type of media is that it facilitates the clients' ability to measure the level of response generated by their advertising spend, allowing them to calculate a more accurate return on investment, a feature which the Board believes differentiates Ekay's product offering relative to other marketing forms. Ekay offers a complete direct marketing solution to its clients, utilising a range of advertising methods and direct mail solutions. In addition to advising on strategy, the Company also offers a complete design and media buying service. Ekay has a graphics department, in-house print consultancy and on-line analysis and marketing consultancy enabling it to provide clients with comprehensive solutions. The Company's largest media activity at present is in television, where the Board believes that the Company is a recognised expert and a market leader in its niche direct marketing sphere. The Board believes that new media marketing campaigns, including activities such as SMS text messaging, web advertising and the effective use of web site design are increasingly being adopted by corporate users. The Directors anticipate that new media will be the Company's fastest growing area of activity over the next few years. The Market Advertising expenditure in the UK has increased by 5.6 per cent. to #18.4 billion in 2004. This growth is anticipated to continue during the next few years. In the Directors' opinion, the following market developments are moving in Ekay's favour at a difficult time in the UK advertising cycle: - the growth of digital new media, providing new opportunities both organically and through potential business acquisition and consolidation; - recent and proposed changes in financial regulation, impacting advertising by financial service providers; - the proposed 'switch off' of analogue terrestrial TV channels - Ekay is a specialist in the digital TV market where more focused audiences allow greater targeting opportunities; and - technology improvements in media allowing an increased focus in targeted marketing, Ekay's core area of competence. - the postal service for direct mail; and - new media including interactive television & text services, the internet and web advertising. The Directors are of the opinion that in order to stay competitive, media agencies will require comprehensive solutions for their clients that go beyond the normal media channels. Ekay's positioning in the market Ekay is a specialist in direct response advertising. This is the process of providing advertising through media targeted at a specific audience, with the aim of creating a direct response from the consumer, typically an enquiry for a product or service. Ekay offers a complete direct marketing solution to its clients, utilising both 'off the page' advertising and direct mail solutions. An advantage of direct response is its easy measurement of effectiveness, relative to other marketing forms. The Company offers a complete design and strategy service, for its clients. Ekay has a history of stable long-term relationships with its client base. Specific advertising media employed by Ekay's clients include: - broadcast media (including both television and radio); - newspapers at a national and a regional level; - magazines; - outdoor; - the postal service for direct mail; and - new media including interactive television & text services, the internet and web advertising. Under the Company's business model, the majority of Ekay's revenue is generated in commissions, paid by the media owners of the advertising space utilised. Ekay has a strict policy of media impartiality for its clients and no media space is booked in advance of establishing clients' requirements, ensuring the most suitable media is always utilised under the agreed promotional strategy. In addition the Company generates revenue through charges for its design and consulting services. The Directors believe this has fostered the Company's reputation and its long standing relationships with its clients. Ekay's historic customer base comes from the financial services sector, typically sub-prime brokers, debt consolidators and mortgage brokers. Through recent client wins Ekay's portfolio has expanded to include national car dealership chains, laser eye surgery clinics, and a major out-of-town shopping centre. The SME sectors are prime users of direct response advertising and are a major target market segment for the Company. Competition In the Directors' opinion the largest advertising agencies, which account for a large proportion of all advertising booked in the UK, generally handle the large international and top spending client brands, whilst the independent agencies generally target national, regional and local brands and services. Ekay can and does compete against larger advertising agencies and has recently won business in competition with several larger agencies. Nevertheless, the Directors consider all other advertising agencies to be the Company's competitors. Typical clients Ekay has been especially successful in winning owner-managed businesses as clients, particularly those businesses which are new to advertising. The Company encounters competition at all stages for such client accounts especially when they grow to a substantial level, which is then likely to make those accounts attractive to the larger agencies. By that stage the client and Ekay have built a strong relationship, and developed a solid understanding of the client's business and requirements. Recent client wins, during the past few months have further diversified Ekay's client base to include several non-owner managed corporations. Examples of such recent wins are a number of national car dealership chains, a major out-of-town shopping centre in Essex, and a specialist ring tone provider for mobile phones. In addition the Company is currently in discussions with a number of potential clients in areas as diverse as a cosmetics retailer, a commercial vehicle manufacturer, a food processor manufacturer and a personal injury claims company. Directors Anthony David Sullivan (55), Non-Executive Chairman. Tony has 30 years experience in the advertising and media industry. For several years he represented the interests of the Association of Media Independents on the council of The Advertising Association. In 1999, Tony led the management buy-out of Media Campaign Services Limited and in 2001 he led that company's acquisition of Squires Robertson Gill. Edward Kenneth Powell (46), Chief Executive. Eddie has worked in advertising sales at Mirror Group Newspapers for 15 years, specialising in the financial services sector and the agencies which catered for companies in that sector. He founded Ekay advertising in 1994 based on the experience he gained whilst working for the national press. In 1999 he formed Ekay Advertising & Marketing Limited and developed it into its present form. Terence Michael Rose (43), Managing Director. Terry has experience in selling advertising airtime for broadcast television, having worked in senior sales positions for a range of companies selling advertising airtime on the ITV network (from 1983 to 1995) and Sky Television (from 1995 to 2001). He joined Ekay in December 2001. John Stanley McCormack (64), Production Director. John has worked for 30 years in print and advertisement production for The Times and Mirror Group Newspapers. He joined Ekay on 1 January 2002. Stuart Richard Cumberland (36), Finance Director. Stuart is co-founder and a partner in Olivine Partners LLP, a specialist corporate finance and tax advisory practice based in London. Stuart has formerly held corporate finance roles in Mazars and Ernst & Young and founded the corporate finance department at Morley and Scott. He has been working with Ekay on a part-time basis since January 2005 and joined the Board on 1 October 2005. This information is provided by RNS The company news service from the London Stock Exchange END MSCAKQKKOBKDQDK
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