MINNOW: Can Peter Scott's Be Heard become the next advertising giant?

Few would bet against ad man Peter Scott, but the 71-year-old has work to do if he is to turn his latest venture into a rip-roaring success.

The man behind Aegis and Engine Group founded Be Heard in 2014 with the goal of creating an agency that could meet demand for digital and mobile advertising. The company embarked on an acquisitions spree, snapping up five companies in three years. The last deal came in November when it bought The Corner for £12 million.

But this year the company’s cash reserves stand at just £3.1 million, meaning 2018 is likely to be a period of calm as it focuses on merging all the acquisitions. Like many small firms floated on AIM, Be Heard has found it hard to generate attention.

It has two brokers — Dowgate and N+1 Singer — but is mostly owned by its founders and large institutions, meaning trade volumes in the stock are low. Scott said: “We are too small and are not generating enough volume. The stock is not active on a daily basis and we are not generating enough interest among market-makers and analysts.”

The only way Be Heard can generate more interest is by performing solidly and growing its market cap over a sustained period. The shares have floundered since the turn of the year, falling from 2.83p to 1.9p today. But they climbed from 2.03p to 2.1p last week after the company released its results. The figures were impressive, with Be Heard enjoying a strong new-business performance, including 46 client wins in 2017.

Billings were up to £34.7 million from £28.9 million while net revenue more than doubled to £19.6 million from £9.5 million.

Thomas Like, an analyst at Dowgate, said: “The group experienced good new clients wins and management is now focused on driving organic growth and maximising collaboration among the five partner agencies. The shares appear undervalued and we maintain our Buy recommendation.”

Analysts also praised Be Heard for its ability to walk clients through every part of the customer process — something larger players can’t do because staff are locked in their own “silos”.

Like added: “The group is unique in size, operating between the large holding groups and individual agencies that specialise in a limited number of areas. The growing opportunity for an agile mid-sized player is illustrated by the year-on-year growth in revenue.”

Could it be another success for Scott? Jump on board and find out.