Marketing analytics group Ebiquity plc (LON:EBQ) has hailed 2016 as a year of “both progress and change” as it reported a solid rise in full-year profits and revenues.
The AIM-listed group saw its underlying pre-tax profits rise by 5.5% to £11.8mln in the full-year to December 31, up from £11.2mln a year earlier, as revenues increased by 9.1% to £83.6mln.
The firm said its Media Value Measurement (MVM) business achieved total year-on-year revenue growth of 12.3%, an increase of 3.6% on a like-for-like, constant currency basis
It added that its Marketing Performance Optimization operations also continued to deliver strong growth, with total revenues up 31.2% on 2015 and like for like constant currency revenue growth of 21.6%
Together MVM and MPO accounted for 72% of overall group revenues, up from 68% in 2015.
Ebiquity said revenues from its Market Intelligence unit were down5.2% on a total basis and by 8.5% on a like for like constant currency basis, with the decrease largely due to an expected substantial decline in revenues from its project based research business
The firm’s net debt decreased to £28.1mln as at December 31, down from £28.9mln a year earlier.
Core change …
Michael Karg, Ebiquity’s CEO, said: "We have seen continued strong performance from our consultancy businesses MVM and MPO, which are at the core of the changing nature of the media landscape particularly around effectiveness and efficiency of marketing investments.
“We have already made good progress with our growth acceleration plan, which will replicate our service offering across key territories, further strengthening our ability to service global clients.”
He added: “Investments into expanding our digital services across our three practice areas coupled with events in the media marketplace - such as the debate around the performance of digital advertising - create significant medium-term growth opportunities.
“The implementation of our plans, the opportunities arising from the changing nature of the industry, makes us excited for the future."
Ebiquity is to pay a dividend of 0.65p, continuing its progressive pay-out policy.
Firm supporters ...
In a note to clients, analysts at broker Numis Securities noted that Ebiquity’s final results were “in line with our expectations”.
The Numis analysts added: “The group detailed its Growth Acceleration Plan last year and has already delivered on a number of milestones, for example the Strategic Media Consultancy, roll-out of effectiveness practices, digital product development and talent review programme.”
Repeating a ‘buy’ rating and 161p target price on the stock they concluded: “We remain firm supporters of Ebiquity and see further scope for the shares to re-rate as the benefits of the GAP are delivered over the coming years.”
Ebiquity shares held steady at 121p after the results, pausing having shot up by 20% in the year-to-date.
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