Ebiquity Plc
("Ebiquity" or "the Company")
27 January 2016
Interim Results for the six months ended 31 October 2015
Ebiquity plc, the independent marketing performance specialists, announces interim results for the six months ended 31 October 2015. Ebiquity provides services to more than 1,100 clients across 70 countries, including over 85%1 of the top 100 global advertisers.
Total revenue up 5% at constant currency2 to £36.6m (2014: £35.0m), up 2% on a reported basis to
£35.6m
Total underlying3 operating profit up 16% to £4.8m (2014: £4.1m) at constant currency and £4.5m on a reported basis
Underlying PBT up 17% to £4.2m at constant currency (2014: £3.6m) and £3.9m on a reported basis
Underlying diluted EPS up 23% to 3.69p at constant currency (2014: 3.0p) and 3.39p on a reported basis
Underlying net cash inflow from operations has improved significantly to £4.3m (2014: £3.8m)
Underlying operating profit margin improved by 120bps on a constant currency basis
Following our change of year end, our next reported results will be for the eight month period to 31 December 2015
Analytics and data divisions continue to drive growthMedia Value Measurement ("MVM") has seen an increase in client engagements as a result of large number of media agency reviews
Market Intelligence ("MI") improved margins, benefitting from investment in our Portfolio platform which is starting to receive a positive client response with renewals (by value) remaining high at 96%
Michael Karg succeeded Michael Greenlees as Group CEO in January 2016
"We have enjoyed an extremely active six months across each of our practices. In particular our Media Value Measurement practice continues to grow both revenue and, on a constant currency basis, margin. The Marketing Performance Optimization practice has once more delivered a standout performance.
Looking ahead, we continue to trade well and we expect to meet management's expectations for the 12 months to 31 December 2015. We believe our appointment as an advisor to the American Association of National Advertisers (ANA) on market transparency represents a clear sign of our Company's reputation, and recognition of the growing importance advertisers' place on leveraging their data assets to produce better results.
We will propose our final dividend for the period to 31 December 2015 when we issue our preliminary results in March 2016.
I am particularly delighted to welcome my successor as Group CEO, Michael Karg, who joined the Company in January. Michael has an impressive background and I am confident I hand over to a worthy successor able and committed to take the Company to the next stage of its development.
Ebiquity | 020 7650 9600 |
Michael Karg, CEO Michael Greenlees, Executive Director | |
Andrew Beach, CFOO | |
Instinctif Partners | 020 7457 2020 |
Matthew Smallwood, Guy Scarborough | |
Numis Securities | 020 7260 1000 |
Nick Westlake, Oliver Hardy (NOMAD) | |
David Poutney, James Serjeant (Corporate Broker) |
1Source: Advertising Age 2014.
2Constant currency figures present current year foreign currency denominated results at last year's foreign exchange rates.
3 Underlying results are stated before highlighted items.
I am pleased to announce that for the half year to 31 October 2015 we have continued to grow our business whilst also improving margins. On a constant currency basis we have delivered:
• Total revenue up 5% to £36.6m (2014: £35.0m)
Underlying operating profit growth of 16% to £4.8m (2014: £4.1m)
Underlying PBT growth of 17% to £4.2m (2014: £3.6m)
Underlying diluted EPS growth of 23% to 3.69p (2014: 3.0p)
The continuing demand for data analytics and performance measurement is driving strong like for like growth in both our Media Value Measurement and Marketing Performance Optimization practices at high margins. Our Market Intelligence practice is beginning to show signs of recovery in some markets as a result of further platform investment and innovation and the Group's increasing profile and reputation supporting new business conversion.
Our VisionOur vision is to be the most respected, independent marketing analytics partner for brands and businesses worldwide. In doing so, we aim to help our clients:
Achieve greater insights into the marketing landscape
Make better informed decisions
Achieve the best return on their media and marketing investments
Continually improve their business performance
Monitor competitors' advertising strategy and investments
Understand the value of their business and brand reputation
Six months ended 31 October 2015 (constant currency) £'000s | Six months ended 31 October 2015 (reported) £'000 | Six months ended 31 October 2014 (reported) £'000 | |
Revenue | 36,574 | 35,633 | 34,971 |
Underlying operating profit | 4,797 | 4,457 | 4,146 |
Underlying operating profit margin % | 13.1% | 12.5% | 11.9% |
The table below sets out a summary of our results, on a constant currency and reported basis:
We enjoyed particularly significant revenue growth in MPO of 38%, with like for like constant currency growth of 29%.
This strong performance, combined with effective cost control in our Market Intelligence practice and Central head office costs, has resulted in an improvement in operating margin performance which has increased 120bps on a constant currency basis.
Like for like ("LFL") figures adjust the prior year results to include the results of acquisitions as if they had been owned for the same period in the prior year. Constant currency figures present current year foreign currency denominated results at last year's foreign exchange rates.
All results are reported before taking into account highlighted items, unless otherwise stated. These highlighted items include share-based payment expenses, amortisation of purchased intangible assets, acquisition costs, restructuring and other non-recurring items.
The issues of accountability and transparency in media marketing have been high profile throughout 2015. Ebiquity leads the market in helping advertisers measure their media performance and secure a high level of financial visibility and return on investment in their media transactions.
Ebiquity plc issued this content on 27 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 January 2016 10:15:20 UTC
Original Document: http://www.ebiquity.com/media/186860/interim-results-for-the-6-months-ended-31-october-2015.pdf