The
Independent reckons that there are two things which may help Tempus to prosper more than its peers – groups like WPP and Cordiant, which have taken hits on their share prices as the advertising market slows down.
Firstly, 87% of its revenues come from the UK and Europe; WPP, for example, is heavily reliant on the US where the economy is currently slowing. This gives Tempus less exposure to the downturn. Secondly, its strategy of key acquisitions and internal reorganisations has shifted its focus to brand building and strategic marketing, boosting revenues from consulting.
The paper says that on pre-tax profit forecasts of £24 million for 2001, Tempus is trading on price/earnings ratio of 16. This, it says, is too cheap – particularly given that WPP owns a 17.5% ‘stalking stake’ in the group.
Independent: Buy
