REG - Aferian PLC - Trading Update

AferianAnnouncement

22/04/2024 07:00

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RNS Number : 4131L  Aferian PLC  22 April 2024

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

22 April 2024

 

AFERIAN PLC

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

Trading Update

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

Trading update

On 5 December 2023, the Group reported that it expected to report revenue
of approximately  $47-48 million and a positive adjusted EBITDA
of approximately $1.6-2.6 million for the year ended 30 November 2023. It now
expects to report revenue and adjusted EBITDA at the lower end of these
ranges.

Net debt as at 30 November 2023 was $6.1 million (31 May 2023: $12.9
million) and as at 31 March 2024 net debt was $12.3 million reflecting the
usual seasonal billing cycle of the group. At both dates, the net debt balance
includes $1.4 million drawn under its shareholder loan facility with Kestrel
Partners LLP ("Shareholder Loan").

Outlook

The 24i video streaming business is making good progress with key new customer
deployments and multiple contract extensions being delivered in the first
quarter. However, there has been a further deterioration in the trading of the
Amino business due to lower than expected orders for video streaming devices
as customers have delayed purchasing decisions longer than anticipated.

Management actions

As announced previously, management actions taken during 2023 to reduce the
Group's annualised cost base by approximately $12 million have been
successfully implemented but the further deterioration in trading at Amino now
requires further restructuring action to be taken.  The Group will,
therefore, immediately implement further annualised cost reductions of c.$3m
in the Amino business.

As a result of the deterioration of Amino's current and forecast trading, the
Group no longer expects Group adjusted EBITDA for FY2024 to be higher than
FY2023.

The Group is in advanced discussions with its lenders over a maturity
extension of its banking facility, which has now reduced to $16.5 million from
$25.4 million and currently matures in November 2024.

The Group expects to report its full year audited results for the year ended
30 November 2023 in May 2024.

Mark Wells, Chairman of Aferian plc, said: "In the face of unprecedented
challenges, this last year has thoroughly tested the resilience of the Group.
However, our 24i video streaming business has made good progress this quarter
and I am confident that the timely management actions taken in the last twelve
months have positioned the Group on the strongest possible foundation for the
future."

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

 

-ENDS-

 

For further information please contact:

 Aferian plc                                    +44 (0)1954 234100
 Mark Wells, Chairman

Donald McGarva, Chief Executive Officer

Mark Carlisle, Chief Financial Officer

 Investec Bank plc                              +44 (0)20 7597 5970
 David Anderson / Patrick Robb / Nick Prowting

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 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 is located in 11
offices, including 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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