Ebiquity cuts costs as lower revenue weighs on underlying profit

Ebiquity ($EBQ) reported first-half revenue of £36.1 million, down 5%, and adjusted operating profit of £2.3 million, down 10%. The adjusted operating margin slipped to 6.5% from 6.8%. Statutory pretax profit recovered to £0.4 million from a £9 million loss, but the earlier period was affected by exceptional charges, including a noncash goodwill impairment.

The marketing-advisory group reduced operating costs by £1.5 million, helping offset weaker sales. Free cash flow nevertheless moved to a £1.8 million outflow from a £0.7 million inflow as working capital absorbed cash; net debt remained £14.9 million. Management said improved trading in July and August kept it on course to meet or exceed market profit expectations. That assessment is forward-looking, not an achieved annual result or a newly quantified guidance range.

Sources:

• Ebiquity RNS announcement via Investegate