Media and marketing analytics group Ebiquity (LON:EBQ) saw its shares gain 2% in trading this morning on news that it was enjoying earlier than expected benefits from its recent acquisition of Xtreme Information Services Ltd. Ebiquity, which advises its clients on how much bang for their buck they get from advertising and marketing spend, snapped up advertising monitoring business Xtreme in April in a move to broaden its international presence.
Today the company said it was seeing synergies between the two business make an impact quicker than previously thought. As a result, whilst revenues are in line with market expectations, pre-highlighted operating profit for the half year to October is likely to be ahead of expectations. The company's interim results are due on January 19, 2011. Shares in Ebiquity started 2010 at 55p and jumped to 72p in the spring on the back of acquisition announcements. The stock enjoyed another surge at the end of October and was trading today at 86.5p.
Ebiquity paid £17.9m in cash, shares and loan notes for Xtreme and is planning to have the integration process wrapped up by the end of the current financial year, which will ahead of schedule. In addition, the total cost of integration is likely to be lower than originally expected. The company added that, at this stage, it was comfortable with market expectations for the full year revenue and pre-highlighted operating profit. In a note by house broker Numis in July, the company was forecast to deliver full year revenues of £41.9m in 2011 and pre-tax profits of £4.2m.
Filed Under: Consumer Cyclicals,