Merit Group PLC shares surged 30% higher in early trade on Thursday after the data and intelligence business issued a positive post-year-end trading update.
The company said it expects to report continuing operational revenues in full-year 2023 of approximately £18.6mln and adjusted EBITDA from continuing operations of no less than £2.6mln, ahead of market expectations by around 20%.
In the update, David Beck, CEO of Merit Group commented: "We now have two strong and profitable operating businesses with attractive gross and net margins. Within the Dods Political Intelligence business our revenue is almost entirely subscription-based and within Merit Data & Technology over 85% is recurring from our long-standing customer base. The group therefore now has healthy visibility of earnings."
He added: "We are targeting further revenue growth in the new financial year which, combined with the significant step down in costs already achieved, will help us drive returns for shareholders."
Around 8.55am, Merit Group shares were 30.5% higher at 47.00p.