Trading Update

RNS Number : 2761G

Immedia Group PLC

22 July 2019

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Monday, 22 July 2019

For immediate release

Immedia Group Plc

("Immedia" or "the Company" or "the Group")

Trading Update

Immedia (AIM: symbol: IME), a supplier of multi-media content and digital solutions for leading brands and global businesses, provides the following unaudited update on its performance covering the six month period ended 30 June 2019 and up to the date of this announcement.

Trading

The Group set about 2019 with a solid base coupled with multiple new business opportunities, with both existing and new clients, and continued excellent relationships with customers.

We have also been encouraged by growth in our Aberdeen business, exemplified by the announcement of a major AV installation contract released on 23 May 2019.  We expect the positive performance of our Aberdeen division to continue throughout the year. 

As a Board we anticipated that several of the business opportunities referred to above would materialise into contracts during Q2.  However, contract conversions are taking longer than first anticipated, therefore impacting the budgeted performance of the first half of the year.  Whilst we remain confident that the expected proportion of new business opportunities will occur, we cannot be certain of the timing, or that a substantive level of this business will come on stream in the current financial year.  

As a result of these uncertainties, combined with a number of challenging factors impacting the economy generally and our market sector in particular, the Board considers it prudent to revise market estimates for the year ending 31 December 2019 as a whole.  

Given the weaker than expected trading result in HY1, the Company expects that the results for the financial year ending 31 December 2019 will now be below market estimates.  The Company currently anticipates that the revised revenue for the financial year will be not less than £4.1m resulting in EBITDA in the region of c£(0.3m), however the Board anticipates the outturn to be better given the current pipeline.

Financial position

The Group continues to have a healthy balance sheet and working capital after making necessary adjustments to its cost base.

Summary

The Board remains positive despite a cautious trading environment.  The business will continue to focus on tightly managing its operating costs and driving efficiencies to ensure that the trading of the business remains secure.  We are also leveraging client engagement whilst our pipeline of opportunity continues to be healthy across our key targets including the development of Omni-channel. We remain optimistic that some of these will be delivered over the short to medium term and will keep shareholders abreast of developments as appropriate.

For further information please contact:
Immedia Group Plc Tim Hipperson, Non-executive Chairman Bruno Brookes, Chief Executive	Tel:  [phone]
SPARK Advisory Partners Limited (Nomad) Mark Brady Neil Baldwin	Tel:  [phone]
SP Angel Corporate Finance LLP (Stockbroker) Abigail Wayne	Tel:  [phone]
TooleyStreet Communications (IR & Media Relations) Fiona Tooley	Tel:  [phone]

About Immedia Group Plc  

Immedia Group Plc is a multi-media content and digital solutions provider to global businesses and organisations, who are investing in internal and/or brand communications.  

Our business provides a wide range of 'live' branded channels specifically to retail locations across the UK and Europe with an estimated listening audience of 8.5 million listeners per week.  Immedia's interactive audio channels deliver original and relevant content, via its own DreamStream-X platform with encrypted Dreamstream technology deployed in each location.  Dreamstream-X provides a mix of 'on brand' national and localised content to a client's workforce and customer base.  Each channel is supported with powerful data analytics tools that monitor audience activity and provide data to enable us to further enhance audience engagement.  

Immedia Group also creates original video content, 3D animation, app and web development, as well as supplying and installing Audio Visual equipment. 

Immedia clients include, HSBC, Shell, Subway, BP, Nationwide Building Society, JD Sports, O2, BMW, IKEA and FIFA.  

To read more about our business, visit www.immediaplc.com or email us on [e-mail]

 

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