Business
Trading Update and Notice of results
Trading Update and Notice of results.
About this update from Ebiquity Plc
[{"type":"text","content":"\n\n \nEbiquity Plc\n22 August 2024\n \nThe following amendment has been made to the 'Trading Update and Notice of Results' announcement released on 22 August 2024 at 07:00 under RNS No 3287B.\nThe Company has amended the year stated for expected Adjusted EBIT in the third paragraph from H1 2023 to H1 2024.\nAll other details remain the same.\nThe full amended announcement is shown below.\n \nTrading Update and\nNotice of results\n \nEbiquity plc (\"Ebiquity\" or the \"Group\"), a world leader in media investment analysis, announces a trading update for the first half year ended 30 June 2024 ahead of its interim results which will be issued on 26 September 2024.\nThe Board currently anticipates the financial year to have an unusually strong weighting to the second half. For the half year ended 30 June 2024, Group revenue is expected to have declined by 7% to £37.9 million (H1 2023: £40.6 million) primarily due to some large clients continuing to reduce budgets. \nThe Group's cost base is largely fixed, as its distinctive, premium service levels depend on the retention of expert talent which means that the profit impact of a revenue shortfall is acute. In light of reduced revenues, Adjusted EBIT for H1 2024 is expected to decline by 61% to £2.3 million (H1 2023: £6.0 million) compressing Adjusted EBIT margin to c6% (H1 2023: 15%). \nThe transformation programme undertaken has enabled the Group to develop a substantial weighted pipeline with contractual coverage for over 80% of forecast revenues for FY 2024. Revenues are expected to increase sharply during late Q3 and into Q4 with an associated material uplift in margins, benefiting from the operational leverage within the Group, leading to an expected recovery in overall margin for the full year.\nNet debt as at 30 June 2024 was £15.3 million with cash balances of £6.7 million and undrawn bank facilities of £8 million. The expectation is that net debt will increase somewhat during the third quarter but then return to around the current level by year end. The Group expects to generate significant profits in H2 2024 and has ample liquidity and headroom against its banking covenants.\nThe Board's expectations for a strong performance in the second half are underpinned by contractual visibility and the Grou...