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Ebiquity slides as it warns on flat profits for continuing business in 2019

The marketing and media consultancy said contractual obligations relating to the sale of its Advertising Intelligence business meant profitability would be "at a similar level to the year just ended”
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The firm sold its Advertising Intelligence arm to Nielsen Media Research in early January

Ebiquity plc (LON:EBQ) shares dropped in early trading Tuesday after the firm forecast flat profits from its continuing business in the new financial year.

In an update for the fiscal year ended 31 December 2018, the marketing and media consultancy said trading had been in line with expectations, adding that its year-end net debt of £28mln had been reduced by around £20mln post-period end after the sale of its advertising intelligence business to Nielsen Media Research Limited on 2 January 2019.

READ: Marketing group Ebiquity plummets as it warns on profits

Following the disposal, Ebiquity said it was targeting an 8% growth rate for its continuing consultancy business in 2019, similar to that of the prior year, however its cost base would continue to reflect the need to fulfil contractual obligations of providing support services to Nielsen in relation to the disposed business, and as such it expected profitability for the consultancy business to “remain at a similar level to the year just ended”.

Michael Karg, chief executive of Ebiquity, said the management team at the firm was now focused on “seizing the significant market opportunities as well as on aligning our business following the divestiture”.

Shares were down 8.2% at 56p.

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