Shares in the digital advertising group Dianomi PLC (AIM:DNM) fell 11% in early trade as investors seemed to ignore the recovery narrative provided in an end-of-year trading statement.
It told investors that revenues would be around £30.1 million for 2023 (down from £35.9 million in '22). And while profitability improved after a round of cost-cutting and restructuring, the company will still register an underlying (EBITDA) loss of up to £400,000.
The challenge for Dianomi has been the sharp decline in the traffic of the publishers it is working with, which it hopes will improve as we move towards the US elections later this year.
CEO Rupert Hodson said: "Traffic levels across major publications were significantly down and this unsurprisingly impacted our business in 2023.
"That said, we enter 2024 in a good position. Backed by a well-capitalised balance sheet, we have an encouraging pipeline of prospective advertisers and publishers, combined with new product launches which are expected to make contributions over the next 12 months."
At 8.30 am, the stock, off almost 90% from its 2021 high, was down 5p at 40.5p.