Business
Ebiquity : 2024 annual results |
Ebiquity : 2024 annual results
About this update from Ebiquity Plc
22 April 2025 Ebiquity plc Final Results for the year ended 31 December 2024 Challenging conditions impacted H1 2024 performance, Stronger H2 2024 performance and encouraging start to 2025 New executive team focused on profitable growth Ebiquity plc ("Ebiquity", the "Company" or the "Group"), a world leader in media investment analysis, announces its results for the year ended 31 December 2024. Financial Headlines Year ended 31 December 2024 2023 Change £m £m £m % Revenue 76.8 80.2 (3.4) (4.3%) Adjusted Operating Profit 1 7.9 12.0 (4.1) (34.3%) Adjusted Operating Profit Margin % 1 10.3% 15.0% (4.7pp) (38.1%) Adjusted Profit before Tax 1 6.5 9.7 (3.2) (33.0%) Adjusted Diluted Earnings per Share 1 3.2p 5.3p (2.1p) (40.4%) Statutory Operating Loss before Tax (0.9) (0.3) (0.6) (200%) Statutory Loss before Tax (2.3) (2.6) 0.3 11.5% 1. Adjusted numbers exclude highlighted items and are alternative performance measures ('APMs') adopted by the Group. These non-GAAP measures are considered useful in helping to explain the performance of the Group and are consistent with how business performance is measured internally by the Group. Further details of the APMs, including their reconciliation to statutory numbers, are given below. Revenue decreased by £3.4 million to £76.8 million (-4.3%) Adjusted Operating Profit decreased by £4.1 million to £7.9 million (-34.3%) Adjusted Operating Profit margin decreased by 4.7 percentage points to 10.3% (2023: 15.0%) Statutory Operating Loss increased by £0.6m to £0.9m Net bank debt of £14.8 million with cash balances of £9.1 million and undrawn bank facilities of £6.0 million, an increase of £2.9 million Adjusted cash from operations of £8.6 million, with conversion being at 108% of adjusted operating profit (2023: £14.7 million, 122%) Stronger H2 performance H2 Revenue of £38.9m was 2.7% higher than H1 (H1 2024: £37.9m) H2 Adjusted Operating Profit of £5.6m was 143.5% greater than H1 (H1 2024: £2.3m) and was broadly consistent with H2 2023 of £6.0m H2 2024 saw a recovery in the Operating Margin to 14.3% (2023: 15%) Strong cash collections during Q4 resulted in Net Debt as at 31 December 2024 at £14.8m (31 December 2023: £11.9m), £0.5m lower than it had been at H1 (30 June 2024: £15.3m) Outlook The Company has seen encouraging trading in the first quarter of 2025, slightly ahead of management's expectations for both revenue and adjusted operating profit. The Board is encouraged by the strategic progress being made under its reshaped leadership team and the outlook for the full year ending 31 December 2025 remains in line with Board expectations. The Company intends to continue investing in R&D initiatives and expanding its AI capabilities, such as the Company's agentic AI solution through which clients can validate in advance their campaign plans, which remains on track for launch in the second half of 2025. While the current macroenvironment creates considerable uncertainty and potential disruption for many of Ebiquity's clients, the Company is uniquely positioned to help brands effectively navigate these challenges, as was demonstrated during the automotive chip shortage crisis as well as during the COVID-19 pandemic. Ruben Schreurs, Chief Executive Officer, said: "I was deeply honoured to be appointed Chief Executive Officer of the Company in November 2024. 2024 was not the year we had envisioned, with soft trading and market conditions experienced in the last quarter of 2023 continuing to create uncertainty in the first half of 2024. Pleasingly, the second half performance reflected the Group's focus on profitability and stringent cost controls and this progress is a testament to the talent and dedication of our people. I am grateful for their hard work during a challenging period. There is a lot to be excited about for 2025, with four key appointments to our executive leadership team ready to further drive our strategic initiatives. We occupy a unique position in the media sector and are perfectly positioned to partner with brands seeking to navigate the current uncertainty and disruptions in the macroeconomic environment. As a major shareholder myself, I am encouraged by the strong future prospects of the business and determined to realise Ebiquity's full potential. I am confident that our focus on quality, innovation and effective and responsible advertising positions us well for success." Board changes The Company also announces that on 31 July 2025 Richard Nichols will retire from the Board and that, with effect from 1 August 2025, Brian Porritt will join the Board as an independent non-executive director and Chair of the Audit and Risk Committee. Brian has extensive CFO board experience obtained while undertaking interim CFO roles at Impellam Group plc, Huntsworth plc and The Quarto Group Inc as well as having served as CFO for substantial international divisions within Warner Music and Yahoo!. Brian also acted as an independent external member of the Audit and Risk Committee of the Department For Digital, Culture Media and Sport for six years until 2022. Pursuant to Rule 17 and Schedule 2 paragraph (g) of the AIM Rules for Companies. Brian Nigel Porritt, aged 66, currently holds a directorship at Transformability Ltd. There is no further information to disclose. Details of presentations The Executive Directors will host a webcast presentation for analysts at 09:00 BST today. If you would like to register to attend, please contact [email protected] . They will also give a presentation via the Investor Meet Company platform on Thursday 24 April at 10:00 BST. The presentation is open to all existing and potential shareholders. Questions can be submitted in advance via the Investor Meet Company dashboard up until 10:00 BST on the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Ebiquity plc via: https://www.investormeetcompany.com/ebiquity-plc/register-investor . Investors who already follow Ebiquity plc on the Investor Meet Company platform will automatically be invited. Enquiries: Ebiquity Via Camarco Ruben Schreurs, CEO Kayte Herrity, CFO Camarco Ben Woodford +44 (0)7990 653 341 Geoffrey Pelham-Lane +44 (0)7733 124 226 Phoebe Pugh +44 (0)7586 714 048 Cavendish Capital Markets +44 (0)20 7220 0500 Nominated Adviser and Sole Broker Ben Jeynes / George Lawson / Hamish Waller - Corporate Finance Julian Morse / Louise Talbot / Sunila de Silva - Sales / ECM About Ebiquity plc Ebiquity plc 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 four Service Lines: Media management, Media performance, Marketing effectiveness and Contract Compliance. Ebiquity's clients are served by more than 575 media specialists, covering 80% of the global advertising market. The Company has the most comprehensive, independent view of today's global media market, analysing over US$100bn of media spend and contract value from over 123 countries annually, including trillions of digital media impressions. As a result, over 75 of the world's top 100 advertisers today choose Ebiquity as their trusted independent media advisor. For further information, please visit: www.ebiquity.com Chair's Statement "2024 was a testing year for Ebiquity. Although the challenges the Group faced were considerable, the year finished with a real sense of tangible optimism for the future prospects of the Company." 2024 proved to be a challenging year for the Company. Although it started soundly, revenue performance stalled in the first half and, given the Company's fixed cost base, this led to a decline in profitability. Despite competitive pressures as some of our peers chose to cut pricing dramatically to buy in business, market uncertainty affecting client confidence and operational constraints as the volume of business became concentrated into a few months, the second half of the year proved stronger than the first. Following action to realise some tactical cost savings, the Group ended the year with Adjusted Operating Profit in H2 more than twice that in H1 2024 and Net Debt reduced by £0.5 million from 30 June 2024. In recent years the business has been re-focussed to a more globally distributed model to best meet clients' demands for a seamless service across geographies. Innovation and the application of technology are integral to this, as is a clear view of the evolving media landscape and Ebiquity's unique ability to service its customers' needs. Advertising through digital media, such as Streaming TV and Retail Media, is increasingly prevalent, now estimated to make up 75% of global spending on advertising. This introduces increased complexity for brand owners and enhanced opportunities for Ebiquity to support them in ensuring their investments in this diverse and fragmented media landscape are effective and responsible. The Board was delighted to appoint Ruben Schreurs as Group CEO in November 2024. Ruben joined Ebiquity in 2020 when it acquired the Digital Decisions business which was founded and led by Ruben. That acquisition was very successful, both in the revenue and profit growth achieved and also in driving our Digital Media Solutions business. Ruben's entrepreneurialism and strategic vision were evident from the success of that enterprise, and he brings the same determination, laser focus and energy to his commitment to create long-term sustainable growth for Ebiquity and its stakeholders. As a circa 7% shareholder in the Company, Ruben is strongly aligned with the interests of our investor community. Since Ruben's appointment he has re-shaped the executive leadership team with three key new appointments from the Company's internal talent pool and affirmed his commitment to improving the quality of Ebiquity's revenue streams, focussing on strategic relationships which yield recurring benefits for the Group and its customers. The deployment of AI is key to this, used as a tool to amplify the considerable expertise of the Company's specialist teams, streamlining processes and enabling large-scale implementations. 2025 will see further progress in the use of AI as an integral tool of the business; in March 2025 we announced the launch of pioneering AI solutions, the expansion of the Company's AI Centre of Excellence and an enhanced strategic partnership with Scope3, which together will transform the services we offer. Being at the forefront of ground-breaking technologies brings with it significant responsibility, especially for a company which is the guardian of vast pools of valuable customer data. The security of that data is essential, as are the governance structures which sit around it. Ebiquity's leadership is committed to Effective and Responsible Advertising, in order to support brand advertisers to maximise the impact of their investments, engender trust through the maintenance of robust ethical and industry standards and achieve optimal brand health and incremental business growth. Ultimately, responsibility for governance sits with the Board and with me as its Chair. In 2024 the Board agreed to adopt the QCA's new Governance Code 2023. The Code comes into operation for the Company with effect from the current financial year and we will report against it next year. In 2024 we continued to apply the 2018 Code and we report on our compliance with it in our Annual Report and Accounts for the financial year ended 31 December 2024 ( Annual Report ). We are pleased to be early adopters of some of the 2023 Code's recommendations as we transition to embedding its principles. This includes putting our Directors' Remuneration Report to an advisory vote of our shareholders, reporting on specific Board skills to support the Company and seeking approval of our shareholders to the annual election or re-election of all members of the Board. Our Board composition remains under regular review and there have been further changes to the Board in 2024 and 2025. Sue Farr joined as Non-Executive director and Chair of the Remuneration Committee in April 2024, taking over from Julia Baddeley when she retired. Julia Hubbard stepped down in August 2024 and Nick Waters resigned from the board in November 2024 to pursue other opportunities. We thank them all for their leadership and respective contributions during their time with the Group. We announced recently that Kayte Herrity had been appointed Group Chief Financial Officer, and she joined us in March 2025. She is a seasoned and accomplished finance professional and brings a wealth of experience of driving financial and strategic improvements. She is already making a difference, providing financial, strategic and operational support to Ruben and the business. Richard Nichols has been a source of financial expertise and wise counsel to the Company in his role as independent Non-Executive Director and Chair of the Audit and Risk Committee for many years. He agreed to stay with us through 2024 while we carried out a search for a permanent CFO and Richard's successor on the Board. With the appointment of the CFO now made, Richard will step down from the Board on 31 July 2025 and Brian Porritt will take up position as an independent Non-Executive Director and Chair of the Audit and Risk Committee with effect from 1 August 2025. Brian is perfectly suited to this role, as a qualified chartered accountant who has spent many years as Finance Director across a range of industry sectors and served in non-executive positions with public and private organisations. Brian is well known to the Board and the Company, having provided support as its Interim Head of Finance from July 2024 to April 2025. We have made further commitments to our sustainability agenda in 2024. Sustainability risks are now embedded in our corporate risk register, and I am pleased to report that they do not present a material issue or barrier to the Company. In support of the Company's commitment to sustainability, the Board mandated that the Annual Report be produced in black and white and on lower weight paper this year to reduce its environmental impact and was proud to support the Company's participation in the Ad Net Zero Steering Committee in 2024. There are more details on this in our Annual Report. There is a great deal to be excited about in relation to Ebiquity in 2025. There are undoubtedly significant challenges in the economic and political environment and the markets have recently become increasingly uncertain. However, the opportunities for the Company are considerable and it has a proven history of supporting clients through turbulent times. We have a new senior executive team in place, with the drive and commitment to deliver new technology-based solutions, enhanced service offerings and profitable growth for the longer term. This would not be possible without the support of Ebiquity's talented and hard-working employees worldwide who have risen to the challenges that 2024 presented and embraced the Company's new leadership with positivity and enthusiasm. On behalf of the Board, I would like to thank them for their dedication, creativity and resilience, especially during this period of change. The Board and I are committed that Ebiquity will move forward with confidence and determination in 2025 to deliver sustainable growth and value for all our stakeholders. Rob Woodward CBE Chair Chief Executive Officer's Review 'There has never been a more exciting time to guide Ebiquity toward sustainable growth and enduring success' I am deeply honoured to have taken on the role of Chief Executive Officer at Ebiquity in November 2024. This appointment comes at a pivotal moment for our organisation, and I want to take this opportunity to reflect on the challenges we faced in 2024 while also outlining a bold vision for our future. I joined Ebiquity five years ago when it acquired Digital Decisions, the business I founded, and I retain profound respect for the Company and its heritage. As Ebiquity's largest individual shareholder, I am deeply committed to its future. A year of challenges 2024 was not the year we had envisioned. The distraction of internal transformation and some unexpected client losses threw up some significant hurdles to test our resilience and adaptability. These challenges were exacerbated by aggressive pricing strategies from competitors, leading some clients to prioritise short-term procurement gains over the quality of their media investments. Despite these difficulties, I am thankful that our team remained steadfast, demonstrating remarkable dedication and commitment to our clients and our mission. Our focus remains on driving good quality revenues and enabling our clients to deliver Effective and Responsible Advertising. Throughout the year, our leadership team worked tirelessly to navigate these turbulent waters. They showed tremendous resolve, ultimately concluding the year on a more positive note, with a second half that saw revenues and adjusted operating profits return to levels comparable to those for the same period in 2023, due to a focus on profitability and stringent cost controls. This progress is a testament to the talent and dedication of our people, and I am grateful for their hard work during a challenging period. Our commitment to excellence As I assume this leadership role, I want to emphasise our unwavering commitment to delivering superior returns on investment for our clients. Ebiquity is not just a company; it is a trusted advisor committed to helping brand owners navigate the complexities of the media landscape. In 2024, over 75 of the world's top 100 brands chose to partner with us, reinforcing our position as a leader in our sector. Despite the market volatility and pricing pressures we experienced, we were able to deliver significant results for our clients. On average, our clients saw a 15% improvement in ROI, amounting to over US$1 billion in annual value enhancement. This success is a clear indication of our focus on transparency, ethics and sustainable results, all of which are vital in today's fast-paced advertising landscape. Emphasising Effective and Responsible Advertising In 2024, we made considerable strides in positioning Ebiquity as a leading exponent of Effective and Responsible Advertising ( ERA ). ERA is not just a guiding principle; it is a commitment to aligning our clients' media investments with best practices, compliance and performance goals. We understand that, as custodians of our clients' data, we bear a unique responsibility to maintain the highest standards of integrity and data security. The importance of ERA cannot be overstated, especially in a world where the media landscape is changing rapidly, digital media is growing exponentially and the need for clarity, confidence and control in advertising investments is key. In March 2025, we launched the ERA Curriculum, a structured framework that will empower our clients to make informed and responsible AI-driven decisions. Agentic AI offers significant opportunities to our clients but needs clear guardrails and instructions to deliver results and mitigate risks. We offer our clients a customised and hosted ERA Curriculum so that they can ensure that their campaigns not only meet industry standards and regulatory mandates but also align with their brand-specific preferences and requirements. The path to secure and compliant AI enhancement Technology continues to reshape our industry and our unending commitment to tech-enabled optimisation is stronger than ever, as our platforms constantly evolve to take advantage of the opportunities presented by the AI revolution. During the year, we integrated our Solutions and Technology teams to enable us to provide our clients with newer, better solutions faster and enable them to keep up to speed with a rapidly evolving media landscape. We also set out the foundations of our new AI centre of excellence in 2024. This groundwork enables AI to become a core enabler of our analytics, measurement and consulting offerings. In March 2025, we were excited to announce the launch of our proprietary .AIRF protocol which provides accelerated AI model development via our ERA Curriculum, thus reducing costs and emissions, and the planned launch in H2 2025 of a pre-flight validation tool deploying agentic AI to allow our clients to validate their media plans before committing to a campaign. We recognise the criticality of ensuring these innovations are underpinned by strict security and compliance standards, enabling us to safeguard our clients' interests while delivering value. A unified vision and purpose: "One Ebiquity" Our vision for the future is encapsulated in our concept of "One Ebiquity", a more agile and integrated organisation that delivers a consistent and seamless client experience. The concept Transform, Govern, Grow reflects this holistic approach, encompassing and uniting our existing service lines. By prioritising high-quality, recurring revenue streams and developing strategic partnerships with our clients, we are creating greater cross-selling and upselling opportunities across our solutions portfolio. In 2024, while our overall Media Performance revenue declined 5.2% year on year, our revenues from core Media Performance solutions provided to our centrally-managed clients rose 9% over the prior year, offset in part by a decline in the one-off Media Management services provided to this group. Our client base expanded to include prominent names such as UBS, Airbnb, and Shiseido. Additionally, we strengthened our relationships with existing clients, demonstrating our commitment to delivering exceptional results and longer-term value. As we continue to focus on this unified approach, we are committed to optimising our operational efficiency. A data-driven in-house review of our revenue quality will help us identify and eliminate contractual inefficiencies and over-servicing, ultimately driving improvements in our operating profit. Strengthening our leadership team In early 2025, our Executive Leadership Team ( ELT ) was refreshed with four key appointments to further drive our strategic initiatives. This team is composed of proven internal talent, such as our dedicated Chief Operating Officer, Mark Gay, and a new external appointment in Kayte Herrity, our new Chief Financial Officer, who brings fresh perspectives and extensive expertise in strategic and transformational programmes to the organisation. Together, we will work collaboratively to ensure we are well-equipped to take the business forward with energy, dedication and expertise to create sustainable growth. There has never been a more exciting time to guide the organisation. Looking ahead As we move into 2025, my commitment to Ebiquity is unwavering. I understand the responsibility that comes with this role, and I am fully dedicated to ensuring that we consistently overdeliver for our clients, our shareholders, our employees and all our stakeholders. I believe the future is bright for Ebiquity. We stand on the brink of transformative growth, driven by opportunities in our core markets, emerging media channels and the technologies to enable our clients to manage them successfully and ethically. I am confident that our focus on quality, innovation and effective and responsible advertising will position us for success in the years to come. We will continue to simplify the customer journey and fully implement our "One Ebiquity" vision. Our core value proposition - Transform, Govern, Grow - will empower brand owners to achieve measurable, sustainable improvements in their media investments. As a major shareholder myself, I am encouraged by the strong future prospects of the business and determined to realise Ebiquity's full potential. Economic and geopolitical uncertainties As we navigate the current economic landscape, it is important to acknowledge the uncertainties on the horizon. Tariffs and shifting international sentiments are likely to disrupt global trade, posing significant challenges for many of our clients. Ebiquity has always been the ideal partner for brands seeking to navigate crises and disruption, thanks to our unique cyclical and anti-cyclical model. This was vividly demonstrated during the automotive chip shortage crisis, where we swiftly assisted clients in reallocating their investments in a manner that maximised equity and efficiency. Similarly, during the COVID-19 pandemic, we provided invaluable guidance to brands forced to make difficult decisions about their advertising spend, ensuring they shape their budgets to sustain their long-term viability. In these times of uncertainty, our commitment to delivering strategic insights and data-driven solutions will empower our clients to make informed decisions, mitigating risks and seizing opportunities as they arise. Gratitude and acknowledgment In closing, I want to express my heartfelt gratitude to our clients, partners, shareholders, and our dedicated team. Your support is invaluable as we embark on this transformative journey. The talent, resilience and dedication of our people are the true drivers of Ebiquity's success, and I am honoured to lead such an exceptional group. Thank you for your continued trust in Ebiquity. Together, we will shape the future of advertising and deliver enduring success. Ruben Schreurs Chief Executive Officer Chief Financial Officer's Review Since joining Ebiquity in early March 2025, I have been extensively briefed on the Group's results and the challenges it clearly faced in 2024. I am excited to have joined the Group at this important time under new and reinvigorated leadership. Summary Income Statement 2024 2023 Change b/(w) £m £m £m % Revenue 76.8 80.2 (3.4) (4.3%) Project-related costs (7.3) (7.4) (0.1) 0.6% Staff costs (49.1) (48.5) (0.6) (1.1%) Other operating expenses (12.5) (12.3) (0.2) (1.4%) Adjusted operating profit 7.9 12.0 (4.1) (34.3%) Adjusted Profit Margin (%) 10.3% 15.0% (4.7%) Net finance costs (1.4) (2.3) 0.9 40.1% Adjusted tax charge (2.1) (2.6) 0.5 19.5% Adjusted profit after tax 4.4 7.1 (2.7) (37.8%) Highlighted items (8.1) (11.4) 3.3 29.3% Statutory loss after tax (3.6) (4.3) 0.6 15.1% Adjusted Diluted Earnings per Share (p) 3.2p 5.3p (2.1p) (40.4%) Statutory Earnings per Share (p) (2.7p) (3.4p) 0.7p (20.7%) Full Year 2024 Revenues of £76.8 million were 4.3% lower than for Full Year 2023. This shortfall arose almost equally in Continental Europe, North America and in Asia Pacific ( APAC ). UK&I was broadly flat. The Europe shortfall was due to reduced Agency Selection and Management business in the region compared with a very strong performance in H1 2023 partly offset by increased Marketing Effectiveness revenue in France. During the year there were leadership changes in Germany and France. The North America decline was primarily in the Media Performance and Contract Compliance service lines. Several clients either did not repeat business in 2024 or reduced scope, particularly in the technology and retail sectors. The APAC decline reflected a slowing economy in China and client retention challenges in Australia. There was a leadership change in Australia late in the year. The UK&I result was the result of Marketing Effectiveness and Contract Compliance growth offsetting the decline in Media Management services. The Marketing Effectiveness growth was due to several new client wins in the insurance, consumer goods and retail sectors. The Media Management decline