Ebiquity Plc
7 February 2023
Trading Update
Ebiquity plc ("Ebiquity" or the "Group"), a world leader in media investment analysis, announces a trading update for the financial year ended 31 December 2022 ahead of its full year results announcement planned for late March 2022.
Ebiquity's trading in the year was in line with market expectations.
The Group performed well with revenue growing by 20% and by 9% organically. Profitability has improved significantly from the prior year with the underlying operating margin expected to be 12%, four percentage points higher than in 2021. This reflects the contribution of recent acquisitions and improved operating efficiencies, as well as the continuing strong growth of our higher margin digital media solutions business.
Thanks to a better than expected second half performance, the earn-out payment for the acquisition of Digital Decisions BV, due in May, is likely to be somewhat higher than estimated in the 2022 interim accounts.
Net debt as at 31 December 2022 was £8.9 million (including cash balances of £12.4 million) with undrawn facilities of £8.5 million.
Nick Waters, CEO, commented:
"The Group has performed well in the year as we continue to build momentum in the business and deliver progress against our strategic plan. Pleasingly, we have not only seen strong revenue growth but also a significant improvement in profit from the previous year and an underlying profit margin which is expected to be 12%. These results reflect the benefit of our two transformative acquisitions in the USA and Europe, our unrelenting focus on improving operating efficiencies and our ability to identify, develop and grow higher margin digital solutions.
We believe that with an increasingly compelling offer covering digital media, combined with better balance across all our geographies and services, Ebiquity remains well placed for long term sustained growth."
Note 1: Underlying operating profit is defined as the operating profit excluding share-based payments, amortisation of purchased intangibles and non-recurring items.
Market abuse regulation
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
Ebiquity plc Nick Waters (Chief Executive Officer) Alan Newman (Chief Financial and Operating Officer)
| Via Camarco
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Camarco Ben Woodford Geoffrey Pelham-Lane Phoebe Pugh
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07990 653 341 07733 124 226
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Panmure Gordon (Financial Adviser, NOMAD & Broker) Dominic Morley/ Dougie McLeod (Corporate Advisory) Mark Murphy (Corporate Broking)
| 020 7886 2500 |
About Ebiquity plc
Ebiquity plc (LSE AIM: EBQ) 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 five Service Lines: Media management, Media performance, Marketing effectiveness, Technology advisory, Contract compliance.
Ebiquity's clients are served by more than 600 media specialists operating from 19 offices covering 80% of the global advertising market.
The Company has the most comprehensive, independent view of today's global media market, analysing $55bn of media spend from 75 markets annually, including trillions of digital media impressions. Our Contract Compliance division, FirmDecisions, audits $40bn of contract value annually.
As a result, more than 70 of the world's top 100 advertisers today choose Ebiquity as their trusted independent media advisor.
For further information, please visit: www.ebiquity.com
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