United Communications Partners Inc (UCPA)

[naturalborninvestor]

UCPA DD

Overview
United Communications Partners is a performance-based communication network with its subsidiaries and operational focus in Europe, notably in the Nordic region.
The UCP network consists of the award winning agencies Tre Kronor Media & Advertising (Sweden) and InSight (Norway), with the more recently formed HOWCOM (Sweden) and Nyheter 365 (Sweden). In early 2013, Tre Kronor Danmark was formed with a presence in Copenhagen ((Denmark). Also in 2013, Tre Kronor acquired a non-controlling stake in Vision in Media Ltd. which operates in the UK.
Core competences include performance based marketing, business development with media and advertising and creative deal structuring for clients.

In May 2013, Tre Kronor Media has won the Best Media Agency of the Year competition by the Swedish Advertising Association. It is the third win of this prestigious award within the last 4 years.


UCPA Performance
2010 Revenues: USD 8.6 million
2011 Revenues: USD 15.5 million (AUDITED!)
2012 Revenues: USD 18.3 million

Quoting the CEO for the company's 2012 performance, "For the full year the UCP net revenues have increased by 15,8% and gross profit by 11,6%. The EBITDA before impairment of Goodwill has improved by 36.3%. Much work has been done to reduce costs by cutting direct cost with 9% and indirect cost by optimising the Tre Kronor organisation and its processes....the aggregated media spend for all the companies in the group including minority interest companies have increased by 73%, whereas our share of this media spend has increased by 39%. During the year we increased our staff in Tre Kronor and Nyheter 365 by 12 people, making the total 45 people.
Last quarter (edit: Q4 2012) UCP improved net revenues by 16,8% and gross profit by 19,9% towards the same quarter of last year. Parallel to growing the existing organisations with new clients, we have in the first quarter 2013 made investments in growing the group of companies by launching Tre Kronor Denmark as a subsidiary and making a minority stake investment in Vision in Media Limited, which operates in the UK." (all information as of 15th April 2013)


Share Structure (as of 15th April 2013)
Authorized Shares (AS) = 2,000,000,000 shares
Outstanding Shares (OS) = 1,610,887,264 shares
Restricted Shares = 1,001,294,440 shares
Float = 602,592,824 shares


Why UCPA is fundamentally undervalued
- UCPA generates solid double-digit millions revenues with a run rate of $20+ million for 2013.
- The business demonstrates significant year-over-year top-line growth rates (2010: $8.6 million, 2011: $15.5 million).
- UCPA is growing organically and by acquisitions of initially non-controlling stakes in profitable media agencies.
- UCPA's market cap is just around $5 million. Leading Price-to-Sales ratio = 0.3!
- UCPA consistently wins big name clients and grows its employee base
- As a result of its geographic expansion in early 2013, and the opening of a new Tre Kronor office in Copenhagen, Denmark, the company is now well positioned to sell cross-border media campaigns across the Scandinavian market to its many existing as well as new clients.
- business is sustaining itself without dilution
- tight float (70% of O/S held in hands of management)
- clean share structure (one share one vote - no preferred shares outstanding)
- UCP is recognized in the media press as a leading independent agency network. Tre Kronor Media is a repeat winner of the prestigious "Agency of the Year" award. A recent report from Plimsol World Analysis analyzing Media Agencies, Oct 2012, ranked the fastest growing media agencies in the Nordics, placing Insight A/S as #1 and Tre Kronor as #4.
- Due to the many minority interests held by the UCP Network, a substantial portion of top-line revenues generated by associated firms remains unaccounted for on the UCP financial statements, but which nontheless strengthen the operational size and value of the entire Group (equity method of accounting). The newly formed company HOWCOM, for instance, was reported to have generated sales of SEK 145 million (approx. USD 22.2 million) in 2012 and is expected to grow at an annual rate of 45% yoy. http://www.resume.se/nyheter/mediebyraer/2013/05/07/cccp-media-blir-howcom-/


Client Testimonials
– "Tre Kronor’s passion and competency made our choice easy and our belief is that our cooperation will energize both us and our partners."
Elisabeth Stahlenius, Head of Communications, SOS Children’s Villages


Recent Updates
Tre Kronor Media voted Best Media Agency 2013...again! (16th May 2013)
http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=501596688

InSight wins Sportmann (15th May 2013)
http://www.in-sight.no/

CCCP Media AB acquires HowCom and changes names (7th May 2013)
http://ucpworld.com/

2012 Annual Report (15th April 2013)
http://ucpworld.com/?page_id=1202#1574
http://www.otcmarkets.com/stock/UCPA/filings

SOS Children’s Villages chooses Tre Kronor (March 13th 2013)
http://ucpworld.com/?page_id=1202#1562
http://www.dagensmedia.se/nyheter/byraer/article3656829.ece

Company Update (Feb. 26th 2013)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=85022321

Tre Kronor recruits Creative Director for new Department
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84968336

Tre Kronor Media Is Clear For Take-off With New Client Scandinavian Airlines
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83220388

Royal Caribbean Cruise selects In Sight
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83291939&txt2find=rccl

Letter from the Chairman (Nov. 28th 2012
http://ucpworld.com/?page_id=1202#1553


Tre Kronor Client Wall


Nyheter365 Client Wall


InSight Client Wall


HOWCOM Client Wall



Corporate Structure