Audioboom Group PLC (AIM:BOOM) shares fell 15% to 475p after the podcast company ended its strategic review and terminated discussions with potential bidders after concluding that indicative takeover proposals failed to reflect its value and growth prospects.
The company also issued a short but upbeat trading update, saying the strong momentum reported in the first quarter has continued into the second.
It said that three parties that had been carrying out due diligence submitted non-binding cash offer proposals since February. However, following strong trading in recent months, the board decided the approaches undervalued the business.
Audioboom launched the review last October, appointing advisers to explore options including a possible sale of the company.
The board said: “The board now consider that the level of indicative offers received from these parties undervalue the company and its prospects, given the accelerating performance of the company during the current financial year.”
All of the proposals were at a premium to Audioboom’s closing share price of 540p on 2 October 2025, the last trading day before the company entered an offer period under takeover rules.
The company said discussions with all interested parties have now ended and it is not currently in receipt of any approaches or sale-related discussions.
For the six months to 30 June 2026, Audioboom said it expects to report revenue of at least US$45 million, up from US$35.1 million a year earlier. Adjusted EBITDA is expected to be at least US$3 million, compared with US$1.8 million in the first half of 2025.
Interim results are scheduled for the middle of next month.
House broker Cavendish said three non-binding indicative proposals had been received to make a cash offer for the company at a premium to the closing price of 540p on 2 October 2025, noting that the objective of the strategic review was to maximise shareholder value and accelerate Audioboom’s growth.
"At this point, we re-establish our previous FY26E forecasts, including revenue of $94.5 million or +18% growth, adjusted EBITDA of $7.2 million, which conservatively includes +19% FY26E opex growth, adjusted EPS of 31.1p, and EFCF of $5.3 million."
"We expect management’s focus on scaling the platform, EBITDA, and cash, will continue to achieve excellent progress in FY26, and we look forward to further detail at H1 results in July, renewals and wins of key podcasts on attractive terms, and attractive strategic opportunities."
** UPDATE: Adds share price and broker comment **
