Shares in Ebiquity soar as revenue climbs thanks to US acquisitions
Media and marketing powerhouse Ebiquity posted revenue of £37m, which was 16 per cent ahead of the same period last year.
The group’s profitability improved significantly and management expects to report underlying operating profit in excess of £4.6m, an increase of at least 100 per cent over the same period last year.
Ebiquity’s underlying operating margin is similarly expected to improve to at least 12 per cent, which would represent an increase of five percentage points over the prior year, enabled by growth in higher margin digital products and improved operating efficiencies.
Net debt as at 30 June 2022 was £12.9m (comprising cash balances of £9.3m and gross debt of £22.2m).
During the period, Ebiquity completed acquisitions of Media Management LLC and Media Path, which CEO Nick Waters said “boosted our presence in the world’s largest advertising market of North America and have provided us with a market leading technology platform that will bring us valuable economies of scale as we continue to grow.”
Ebiquity continues to be in discussions regarding the divestment of its small Russian subsidiary.
Commenting on the wider results, Waters said: “Not only is revenue up strongly, but importantly, the improvements we have made to the business have also led to significant profit and margin growth.”
He did say that there was “undoubtedly greater uncertainty given the increasing macro-economic challenges”, but said that the company could see potential opportunities within this.