'Transitional' Ebiquity Reports Flat First Half

UK-based marketing and media Plc Ebiquity has announced flat revenue (£35.3m) and profits (PBIT £2.9m) in Interim Results for the six months ended 30th June, citing a 'transitional period'.

A statutory operating profit of 2.8m in the equivalent period last year turned into a loss of £2.8m in the recent period. The results are the first since the group's sale of its AdIntel business, completed at the turn of the year - Nielsen acquired AdIntel for a reported £26m. Ebiquity says it focus has therefore been on 'establishing the basis for improving performance of the continuing business'.

The sale reduced the company's net debt from £28m to just £7m, and a cost-cutting review is expected to yield another £1m in annual savings. The period saw the company take an impairment charge of £5.9m in relation to the winding-down of its loss-making US martech business Stratigent.

In terms of business units, the majority media division saw revenue down 1% to £27.7m, while the Analytics and Tech division grew revenue 4% to £7.6m as it expanded into France and the US. Within the latter division, the AdTech advisory practice increased revenue by 124%.

CEO Michael Karg (pictured) says the figures 'as expected reflect a transitional phase for Ebiquity as we become a more streamlined business following the sale of AdIntel. We have a clear focus on driving our higher margin consulting practices, optimising our cost base and strengthening the foundations to deliver future revenue growth. In addition our significantly reduced debt provides the financial flexibility to invest in our key practice areas and markets to deliver improved performance'.

In March, the firm reported an effective like-for-like revenue increase of 7% for its continuing business, but underlying profit before tax down £2.7m to £5.2m.

Web site: www.ebiquity.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.