Ebiquity

LN: EBQ

£28.9m market cap

38p last close

Ebiquity is a leading independent media and marketing consultancy with 18 offices globally. The company helps brands harness data, analytics and technology to improve the business impact of marketing investments. Its c 650 experts, data scientists, analysts and consultants advise 70 of the world’s 100 largest advertisers.

Investment summary

Ebiquity has announced that it has acquired Digital Decisions, strengthening its capabilities in digital media monitoring and consultancy. Digital Decisions is a comparative newcomer, trading for less than three years, during which it has built an impressive client roster. It is headed up (and majority owned) by Ruben Schreurs, who will be staying with the combined group and leading the expansion drive into the US. The initial consideration is €0.7m in cash, with further payments subject to performance criteria through to FY22. Bringing useful additional technical capability, this looks to be a sensible, complementary purchase.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 64.2 10.8 7.9 6.2 6.1 5.2
2018A 69.4 7.8 5.2 3.5 10.9 N/A
2019E 71.0 7.5 5.3 4.0 9.5 5.1
2020E 72.3 8.3 6.5 5.0 7.6 4.8
Industry outlook

The continuing shift of budgets to digital alters the type of support required by advertisers. However, EBQ has been gaining business from large digital players, including Deliveroo and Facebook, which have become large advertising spenders in their own right and use EBQ’s services such as media performance and contract compliance. EBQ is increasingly focused on forward-looking advice and on those areas where its expertise can most effectively be leveraged, such as in analytics and digital. Its independence from media buying and trading is a clear advantage in a market where trust remains an issue.

Last updated on 09/01/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 6.9
Forecast gearing ratio (%) 18
Price performance
%
1m
3m
12m
Actual (3.8) (24.8) (43.3)
Relative* (7.9) (29.9) (49.3)
52-week high/low 67.0p/37.0p
*% relative to local index
Key management
Rob Woodward Chairman
Michael Karg CEO
Alan Newman CFO

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