LBG Media PLC (AIM:LBG) shares climbed 4% on Tuesday after the digital publisher reported a sharp jump in profits and reaffirmed its target for double-digit revenue growth this year, despite a weaker US dollar and market volatility.
Pre-tax profit more than doubled to £8.6 million in the six months to March, as revenue grew 13% to £43.9 million, driven by strong advertiser demand across both direct brand partnerships and programmatic content, with 10 high-value clients added in the US.
Cash holdings were bolstered by a 110% cash conversion rate.
The company added that it had a strong sales pipeline and although currency fluctuations are expected to trim revenue by £2 million, LBG said it had taken steps to mitigate the impact and remains well-positioned for further growth.
Peel Hunt said: "Encouraging momentum continues, particularly in the US.
"Despite the macro noise, the business looks on track to deliver robust 10% constant exchange rate growth this year, underscoring the strength of LBG’s proposition and the sustained positive growth of social media advertising."
The shares rose 4.05p to 98.05p. Peel says 'buy' up to 150p.