Ebiquity PLC, a global leader in media investment analysis, has released a trading update for the first half of 2024, ahead of its interim results scheduled for 26 September 2024. The company anticipates an unusually strong weighting to the second half of the financial year. For the half year ended 30 June 2024, Group revenue is expected to have declined by 7% to £37.9 million, primarily due to some large clients continuing to reduce budgets.
The Group's cost base is largely fixed, and in light of reduced revenues, the Adjusted EBIT for H1 2023 is expected to decline by 61% to £2.3 million, compressing the Adjusted EBIT margin to c6%. However, the transformation program 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, leading to an expected recovery in overall margin for the full year.
As of 30 June 2024, the net debt was £15.3 million with cash balances of £6.7 million and undrawn bank facilities of £8 million. The Group expects to generate significant profits in H2 2024 and has ample liquidity and headroom against its banking covenants. The Board's expectations for a strong performance in the second half are underpinned by contractual visibility and the Group's existing pipeline. However, the Board believes profits for the full year will be below its previous expectations due to the material level of execution risk associated with delivering the steep ramp up in new business and renewals during H2 2024.
Nick Waters, CEO of Ebiquity, commented on the challenging H1 2024 performance but expressed optimism about the anticipated growth in the North American business, where a significant number of opportunities have been identified that are expected to convert to stronger second-half revenues.
The company will provide further guidance on the expected full-year outturn at the interim results in September. For any inquiries, Ebiquity can be contacted via Camarco, and Panmure Liberum serves as the Financial Adviser, NOMAD & Broker.