£30.8m market cap

40.5p 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’s interim figures reflected its transitional phase post the £26m AdIntel disposal, with revenues flat against the prior period on continuing business and a broadly stable operating profit margin (pre-unallocated costs). We trimmed our FY19 and FY20 revenue expectations but maintained our operating profit forecasts on the figures. The focus is now on building operating margin through careful cost management, and consolidating and building on the group’s positioning as a trusted advisor to CMOs. The shares are priced at a clear discount to smaller marcomms companies on an EV/EBITDA basis, nearer parity on P/E.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 64.2 10.8 7.9 6.2 6.5 5.5
2018A 69.4 7.8 5.2 3.5 11.6 N/A
2019E 71.0 7.5 5.3 4.0 10.1 5.5
2020E 72.3 8.3 6.5 5.0 8.1 5.2
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 aligning its offering towards forward-looking advice and is focusing 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 issues have been to the fore.

Last updated on 04/12/2019
Share price graph
Balance sheet
Forecast net debt (£m) 6.9
Forecast gearing ratio (%) 18
Price performance
Actual (6.9) (25.7) (30.8)
Relative* (5.4) (25.4) (33.4)
52-week high/low 67.5p/40.5p
*% relative to local index
Key management
Rob Woodward Chairman
Michael Karg CEO
Alan Newman CFO

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