Trading Update and Acquisition

RNS Number : 0582A

Ebiquity PLC

31 January 2022

 

Ebiquity Plc  

31 January 2022

Trading Update and Acquisition

Ebiquity plc ("Ebiquity" or the "Group"), a world leader in media investment analysis announces a trading update for the financial year ended 31 December 2021 ("2021"), ahead of the full year results announcement planned for 25 March 2022.

Trading Update

Group revenue for 2021 was in line with the Board's expectations with year-on-year growth of 12%. Consistent with its strategy, the business has benefitted from strong growth in higher margin digital media solutions revenue and continued prudent cost management. As a result, the underlying operating profit¹ for 2021 is now expected to be materially ahead of market expectations, at not less than £4.7m. 

Ebiquity also continued to achieve strong cash conversion in the year. Net debt as at 31 December 2021 of £4.8 million (comprising cash balances of £13.2 million and gross debt of £18.0 million) was significantly lower than previously anticipated.

Acquisition

The Group also announces the acquisition of Forde and Semple Media Works, the leading media performance consultancy in Canada. Forde and Semple has a well-established domestic blue chip client base and a long-standing relationship with Ebiquity in support of projects covering Canadian media. It had revenues of CAD $1.1m in the financial year ended 31 January 2021. This acquisition will extend Ebiquity's geographic presence in North America and enhance the services that we offer to our US and global client base.

Nick Waters, CEO, commented:

"Ebiquity has built on its good momentum in the first six months of last year, delivering an excellent second half result, with full year profit now expected to be materially ahead of market expectations. 2022 has started well. The revenue and profit performance has been underpinned by strong traction in our new, higher margin digital media solutions and a continued focus on prudent cost management.

We are pleased to announce the acquisition of Forde and Semple, the leading Canadian media performance consultancy which will enhance our reach in North America. Our strengthening balance sheet also enables the Group to consider further acquisitions while continuing to drive organic growth."

Note 1: Underlying operating profit is defined as the operating profit excluding share-based payments, amortisation of purchased intangibles and non-recurring items.

Market abuse regulation

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/201 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Enquiries:

Ebiquity plc Nick Waters (Chief Executive Officer) Alan Newman (Chief Financial and Operating Officer)	Via Instinctif Partners
Instinctif Partners Matthew Smallwood Guy Scarborough	07831 379 122 07917 178 920
Panmure Gordon (Financial Adviser, NOMAD & Broker) Alina Vaskina (Corporate Advisory) Charles Leigh-Pemberton (Corporate Broking)	020 7886 2500

About Ebiquity plc

Ebiquity plc (LSE AIM: EBQ) is a world leader in media investment analysis. It harnesses the power of data to provide independent, fact-based advice, enabling brand owners to perfect media investment decisions and improve business outcomes. Ebiquity is able to provide independent, unbiased advice and solutions to brands because we have no commercial interest in any part of the media supply chain.

We are a data-driven solutions company helping brand owners drive efficiency and effectiveness from their media spend, eliminating wastage and creating value. We provide analysis and solutions through five Service Lines: Media management, Media performance, Marketing effectiveness, Technology advisory, Contract compliance.

Ebiquity's clients are served by more than 500 media specialists operating from 19 offices covering 80% of the global advertising market.

The Company has the most comprehensive, independent view of today's global media market, analysing $55bn of media spend from 75 markets annually, including trillions of digital media impressions. Our Contract Compliance division, FirmDecisions, audits $40bn of contract value annually.

As a result, more than 70 of the world's top 100 advertisers today choose Ebiquity as their trusted independent media advisor.

For further information, please visit:  www.ebiquity.com

 

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