I-Design shares surge on news of software firm’s maiden profit

Shares in cash machine advertising software firm I-Design gained almost 6 per cent yesterday after it said big contracts with Barclays and a European ATM provider helped it to its first profit.

In a brief trading update ahead of full results, the Dundee-based company surprised analysts by announcing it expects to report “a small maiden profit” before tax for the year to 30 September.

The firm launched a new generation of software this summer called “joono”, and won a string of contracts including a deal to run its programmes on Barclays’ 4,000 cash machines and another covering thousands of ATMs on the continent operated by independent provider YourCash.

It also numbers Royal Bank of Scotland, Santander and Nationwide among its clients.

Chief executive Ana Stewart said the joono software had sparked renewed interest from the industry and the company was progressing on talks with a number of other parties.

She said I-Design’s revenues from the advertising side of the business have also been growing throughout the year, with sales gathering momentum. “As we are growing, the product is becoming more established among advertisers and that generates more interest,” she said.

The firm’s media sales division manages advertising from large consumer brand names such as Nivea, Vodafone, Coca-Cola and British Airways.

At the start of this year, analysts had pencilled in losses of about £300,000, compared to a £1 million deficit in the year to September 2010. Expectations were upgraded but news of a profit was still a surprise.

Martin Lister, an analyst with Edison Investment Research, said the update was encouraging.

“Notwithstanding the current uncertain economic environment, growth in revenues should continue,” he said. “However, profitability is likely to be dependent on adding further joono licence revenues.”

Shares were up 3.5p to 64.5p.