REG - Aferian PLC - Trading Update

AferianAnnouncement

24/10/2022 07:00

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RNS Number : 8427D  Aferian PLC  24 October 2022

RNS

 

24 October 2022

 

AFERIAN PLC

 

("Aferian", the "Company" or the "Group")

 

Trading Update

 

Aferian plc (LSE AIM: AFRN), the B2B video streaming solutions company, today
announces the following trading update.

 

Recently our Amino business has experienced delays due to the desire of some
customers to reduce their working capital, particularly in the USA.
Consequently, device revenues are now expected to be approximately 10% lower
than our expectation for the year ending 30 November 2022 as previously
communicated in our June 2022 trading update that indicated a second half
weighting for the Amino business. This trend is expected to continue into the
first half of FY23 as some customer inventory levels remain high having been
bolstered to mitigate the earlier supply chain disruptions.

 

Exit ARR and software revenue growth of approximately 15% and 5% respectively
(25% and 15% on a constant currency basis) remains in line with original
management expectations as demand for 24i's applications to deliver video
streaming services continues in line with growing market trends. This is
supported by growth from existing customers as well as new wins such as the
partnership with Swisscom Broadcast announced on 31st August 2022.

 

In the light of these facts, the Board now expects Group adjusted operating
profit for the year ending 30 November 2022 to be in the range of $7.8m to
$8.8m.

 

In addition, there will be a one-off charge of approximately $5.5m in the
period for costs incurred in relation to an aborted significant acquisition
opportunity. As a consequence, and because of the strategic investment made in
inventory to de-risk device production volumes, net cash at 30 November 2022
is expected to be in the range of $2m net cash to $2m net debt.

 

Despite the short-term headwinds in the Amino device business the Board
remains committed to the business strategy to serve the growing video
streaming market.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated by the Market Abuse Regulation
(EU) No.596/2014, as it forms part of UK law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement, this
inside information is now considered to be in the public domain.

 

The person responsible for the release of this announcement on behalf of the
Company for the purposes of MAR is Mark Carlisle.

 

For further information please contact:

 

 Aferian plc                                                           +44 (0)1223 598197
 Mark Wells, Chairman

 Donald McGarva, Chief Executive Officer

 Mark Carlisle, Chief Financial Officer

 Investec plc (NOMAD and Broker)                                       +44 (0)20 7597 5970
 David Anderson / Patrick Robb / Nick Prowting / Cameron MacRitchie

 FTI Consulting LLP (Financial communications)                         +44 (0)20 3727 1000
 Matt Dixon / Tom Blundell

 

 

About Aferian plc

Aferian plc (AIM: AFRN) is a B2B video streaming solutions company. Our
end-to-end solutions bring live and on-demand video to every kind of screen.
We create the forward-thinking solutions that our customers need to drive
subscriber engagement, audience satisfaction, and revenue growth.

 

It is our belief that successful media companies and services will be those
that are most consumer-centric, data driven and flexible to change. We focus
on innovating technologies that enable our customers to stay ahead of evolving
viewer demand by providing smarter, more cost-effective ways of delivering
end-to-end modern TV and video experiences to consumers. By anticipating
technological and behavioural audience trends, our software solutions empower
our customers to heighten viewer enjoyment, drive growth in audience share and
ultimately their profitability.

 

Aferian plc has two operating companies: 24i, which focusses on streaming
video experiences, and Amino, which connects Pay TV to streaming services. Our
two complementary companies combine their products and services to create
solutions which ensure that people can consume TV and video how and when they
want it. Our solutions deliver modern TV and video experiences every day to
millions of viewers globally, via our growing global customer base of over 500
service providers.

 

Aferian plc is traded on the London Stock Exchange's AIM stock market (AIM:
symbol AFRN). Headquartered in Cambridge, UK, the Company has over 350 staff
located in 11 offices, including in such major European cities
as Amsterdam, Helsinki, Copenhagen and Brno, as well as in San
Francisco and Hong Kong. For more information, please visit www.aferian.com
(http://www.aferian.com/) .

 

 

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