themutual.net hits profits

The company restricted its loss to just £28,000 compared with last year's £1.22m deficit, on a turnover of £821,000, up from £476,000. The group retained around £199,000 in cash and has decided not to pursue the previously announced acquisition of Keepahead Limited, due to the "significant improvement in the relative value of themutual.net".

Described as "extremely positive" by chairman Vince Smith, the results go some way towards reflecting the potential of the email marketing sector, which is primed for growth over the coming years.

The company represents five other media owners to sell and deliver email advertising to their databases, which, when coupled with their own database gives it a distribution list of more than 750,000 names. Some 90,000 new subscribers have registered with themutual.net since the beginning of the year.

Smith said: "We believe that our model of rewarding members with free shares, when combined with the growth of the company, will ultimately lead to signing up a significant proportion of the UK users of the internet."

The company opened the virtual doors to its new website earlier this month. Smith said: "The new site has significantly increased the conversion rate of visitors to new members which in turn generates revenues."

Shares are level at 0.045p, valuing the company at £1.66m, about three times stated net assets.

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