REG - Ebiquity PLC - Trading Update and Acquisition

EbiquityAnnouncement

31/01/2022 07:00

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RNS Number : 0582A  Ebiquity PLC  31 January 2022

Ebiquity Plc

 

31 January 2022

 

Trading Update and Acquisition

 

Ebiquity plc ("Ebiquity" or the "Group"), a world leader in media investment
analysis announces a trading update for the financial year ended 31 December
2021 ("2021"), ahead of the full year results announcement planned for 25
March 2022.

 

Trading Update

 

Group revenue for 2021 was in line with the Board's expectations with
year-on-year growth of 12%. Consistent with its strategy, the business has
benefitted from strong growth in higher margin digital media solutions revenue
and continued prudent cost management. As a result, the underlying operating
profit(1) for 2021 is now expected to be materially ahead of market
expectations, at not less than £4.7m.

 

Ebiquity also continued to achieve strong cash conversion in the year. Net
debt as at 31 December 2021 of £4.8 million (comprising cash balances of
£13.2 million and gross debt of £18.0 million) was significantly lower than
previously anticipated.

 

Acquisition

 

The Group also announces the acquisition of Forde and Semple Media Works, the
leading media performance consultancy in Canada. Forde and Semple has a
well-established domestic blue chip client base and a long-standing
relationship with Ebiquity in support of projects covering Canadian media. It
had revenues of CAD $1.1m in the financial year ended 31 January 2021. This
acquisition will extend Ebiquity's geographic presence in North America and
enhance the services that we offer to our US and global client base.

 

Nick Waters, CEO, commented:

 

"Ebiquity has built on its good momentum in the first six months of last year,
delivering an excellent second half result, with full year profit now expected
to be materially ahead of market expectations. 2022 has started well. The
revenue and profit performance has been underpinned by strong traction in our
new, higher margin digital media solutions and a continued focus on prudent
cost management.

 

We are pleased to announce the acquisition of Forde and Semple, the leading
Canadian media performance consultancy which will enhance our reach in North
America. Our strengthening balance sheet also enables the Group to consider
further acquisitions while continuing to drive organic growth."

 

Note 1: Underlying operating profit is defined as the operating profit
excluding share-based payments, amortisation of purchased intangibles and
non-recurring items.

 

Market abuse regulation

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/201 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

 

Enquiries:

 

 Ebiquity plc                                            Via Instinctif Partners

 Nick Waters (Chief Executive Officer)

 Alan Newman (Chief Financial and Operating Officer)

 Instinctif Partners

 Matthew Smallwood                                       07831 379 122

 Guy Scarborough                                         07917 178 920

 Panmure Gordon (Financial Adviser, NOMAD & Broker)

 Alina Vaskina (Corporate Advisory)                      020 7886 2500

 Charles Leigh-Pemberton (Corporate Broking)

 

About Ebiquity plc

 

Ebiquity plc (LSE AIM: EBQ) is a world leader in media investment analysis.
It harnesses the power of data to provide independent, fact-based advice,
enabling brand owners to perfect media investment decisions and improve
business outcomes. Ebiquity is able to provide independent, unbiased advice
and solutions to brands because we have no commercial interest in any part of
the media supply chain.

 

We are a data-driven solutions company helping brand owners drive efficiency
and effectiveness from their media spend, eliminating wastage and creating
value. We provide analysis and solutions through five Service Lines: Media
management, Media performance, Marketing effectiveness, Technology advisory,
Contract compliance.

 

Ebiquity's clients are served by more than 500 media specialists operating
from 19 offices covering 80% of the global advertising market.

 

The Company has the most comprehensive, independent view of today's global
media market, analysing $55bn of media spend from 75 markets annually,
including trillions of digital media impressions. Our Contract Compliance
division, FirmDecisions, audits $40bn of contract value annually.

 

As a result, more than 70 of the world's top 100 advertisers today choose
Ebiquity as their trusted independent media advisor.

 

For further information, please visit: www.ebiquity.com
(http://www.ebiquity.com/)

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