Ebiquity PLC has announced its interim results for the six months ended 30 June 2023. The company reported strong financial performance, with revenue increasing by £3.9 million to £40.6 million, a growth of 11%. Adjusted operating profit increased by £1.1 million to £6.0 million, a growth of 23%. The adjusted operating profit margin also increased by 1.4 percentage points to 14.7%. The company's statutory operating profit increased by £3.5 million to £2.4 million. The net bank debt was reported at £15.0 million, with cash balances of £9.8 million and undrawn bank facilities of £4.7 million as of 30 June 2023.
The operational momentum of the company was driven by improved profitability in the UK and North America. The three-year transformation and integration program is progressing, with a focus on rationalizing and automating products and processes in 2023. The company reported a revenue growth of 10% from its Media Performance service line, with Digital Media Solutions' revenue growing by 32% to £3.7 million and an operating profit margin of over 50%. However, the APAC region's profitability was impacted by the phasing of revenue delivery, which is expected to recover in the second half.
In terms of current trading and outlook, the company stated that a small number of large clients have recently reduced budgets. However, the business continues to trade broadly in line with expectations for 2023. The company also noted that the pressure from macro conditions on clients' businesses is creating some uncertainty for 2024. Despite this, the company remains well positioned to help its clients and sees further opportunities for revenue growth and margin enhancement.
CEO Nick Waters commented on the results, stating, "We have delivered a good performance despite the more challenging market conditions. Revenue, profit, and margins all grew driven by particularly strong momentum in the US following our successful integration of MMi and continued growth from Digital Media Solutions." He also highlighted the company's ability to cross-sell and up-sell more solutions and mentioned major clients such as GM, Amgen, J&J, Danone, Ferrero, Disney, and Jaguar Land Rover.
The company is currently six months into a three-year transformation program, which aims to transition core services onto the GMP365 data management platform. The company stated that it is making good progress and remains on track to achieve its objectives. The Executive Directors will be hosting a webcast presentation for analysts and institutional investors, and a presentation for investors via the Investor Meet Company platform on 2 October 2023.