Trading Update

RNS Number : 1435I

Ebiquity PLC

22 November 2018

 

Ebiquity Plc                                          

Trading Update

Ebiquity plc ("Ebiquity"), a leading independent marketing and media consultancy, provides a trading update in relation to the financial year to 31 December 2018.

At Group level, Ebiquity anticipates organic revenue growth of circa 2%. However, the previously reported slowdown in the Advertising Intelligence practice, coupled with continued underperformance of the US Digital Analytics practice (for which actions have been taken) and delays in closing recent Media practice opportunities in Germany will result in operating profit being materially below current market expectations.  With today's announcement of the CMA's final clearance of the sale of the Advertising Intelligence business, the Group's net debt position will be materially improved following the receipt of sale proceeds now anticipated to be around the end of the year. 

Despite the revenue delays in Germany and challenges in the US Digital Analytics practice, the Media, Analytics and Tech practices (being the retained business following the disposal of the Advertising Intelligence business) continue to make strong progress in most territories, with overall revenue growth in line with expectations at circa 8% with particularly encouraging performances in the UK & Ireland and French markets.  Encouraging new business wins in H2 include a global multi-year assignment across VW Group and the appointment as a global analytics partner to Nestle.  Overall however, at an operating profit level, continued investment in these practices will mean profits are anticipated being below expectations.

The Advertising Intelligence practice continued to underperform in the year, given the ongoing uncertainties around the proposed disposal. This lengthy process required a considerable amount of management time and attention. The completion of this transaction will simplify the Group allowing it to focus on growing its core Media, Analytics and Tech practices going forward.  

22 November 2018

Enquiries:

Ebiquity plc Michael Karg (CEO) Kevin McNair (Interim CFO)	020 7650 9600
Instinctif Partners Matthew Smallwood Guy Scarborough	020 7457 2020
Numis Securities Limited Nick Westlake (NOMAD) Michael Wharton	020 7260 1000

 

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