Outdoor advertising group Ocean Outdoor (OOUT) may still be exploring a potential sale of the business but its shares surged 6.5% to $9.80 on a strong year-end trading update.
The company said it had beaten its annual earnings expectations after its revenue jumped 44%. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months to 31 December amounted to £18.6 million, compared to a year-on-year loss of £0.4 million.
Revenue rose to £124.4 million, up from £86.2 million.
The company said it started experiencing a recovery in demand in the second quarter, with client activity tracking the vaccine rollout and phased lifting of Covid-19 restrictions.
Ocean Outdoor in November announced that it had initiated a strategic review, having assessed that the company was undervalued.
STRATEGIC REVIEW CONTINUES
‘The board is continuing to evaluate a number of options, including a potential sale, following interest and conditional offers received which may or may not lead to a transaction,’ it said.
‘Another update will be made when appropriate.’
On its financial outlook, Ocean Outdoor said it expected revenue and adjusted for the 2022 financial year to be ahead of the 2019 financial year.
Numis analyst Gareth Davies said: ‘Ocean has released a strong trading update. Despite commencing the year with Omicron and restrictions to leisure and hospitality across some countries, trading has started strongly.’
