Ebiquity

LN: EBQ

£22.4m market cap

29.5p last close

Ebiquity is a leading independent marketing and media consultancy, working for 70 of the world’s 100 leading brands to optimise their media investments.

Investment summary

FY19 results (delayed by the COVID-19 lockdown) were in line with expectations. The impact of the pandemic on the advertising sector is heavy, but far from uniform, with some verticals notably more resilient than others. Ebiquity’s leading market position equips it with the data to benchmark and advise. Careful cost management should mitigate some of the COVID-19-related trading impact, with the balance sheet remaining sound. Management guidance remains withdrawn. New CEO, Nick Waters, joins from Dentsu Aegis on 1 July. His experience there, and previously at Mindshare, should be a good fit, bringing the agency and holding company insight.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 69.4 7.8 5.2 3.7 8.0 N/A
2019A 68.7 9.2 5.3 3.6 8.2 5.4
2020E 59.5 5.2 3.3 2.5 11.8 15.4
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Accenture has acknowledged the inherent dilemma of both pitching for marketing contracts and simultaneously auditing their efficacy by announcing the intended closure of its media auditing practice from August. This increases the potential addressable market for EBQ for both regional and global consultancy accounts and accentuates the advantage of its independence. The group 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.

Last updated on 03/06/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 10.7
Forecast gearing ratio (%) 26
Price performance
%
1m
3m
12m
Actual 5.4 (18.1) (42.2)
Relative* (2.4) (11.8) (34.0)
52-week high/low 58.0p/22.5p
*% relative to local index
Key management
Rob Woodward Chairman
Alan Newman CFO

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