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Research: TMT
Ebiquity has postponed publication of its final results, in line with the FCA guidance. The trading update indicates the figures are as outlined in February’s period-end update, with year-end net debt at £5.8m. Committed facilities of £24m are in place, of which £14m was drawn down at the year-end. Guidance for FY20 has been withdrawn in light of the COVID-19 pandemic. The group’s clients, both locally and globally, are certain to be reining in their marketing spend, but are going to be keener than ever to ensure what they spend has the best return on investment.
Ebiquity |
COVID-19 update; results postponed |
Trading update |
Media |
24 March 2020 |
Share price performance
Business description
Analysts
Ebiquity is a research client of Edison Investment Research Limited |
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Ebiquity has postponed publication of its final results, in line with the FCA guidance. The trading update indicates the figures are as outlined in February’s period-end update, with year-end net debt at £5.8m. Committed facilities of £24m are in place, of which £14m was drawn down at the year-end. Guidance for FY20 has been withdrawn in light of the COVID-19 pandemic. The group’s clients, both locally and globally, are certain to be reining in their marketing spend, but are going to be keener than ever to ensure what they spend has the best return on investment.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/17 |
64.2 |
7.9 |
6.2 |
0.71 |
5.9 |
1.9 |
12/18 |
69.4 |
5.2 |
3.5 |
0.71 |
10.4 |
1.9 |
12/19e |
68.7 |
5.3 |
4.1 |
0.71 |
8.9 |
1.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Ebiquity’s balance sheet has been more robust since the disposal of AdIntel last year and there is headroom for further borrowing in the banking facilities. With a large element of consulting in the mix, costs are heavily weighted to staff. Business is continuing, with services delivered to clients remotely across most of the group’s offices globally and those in China and Singapore now starting to revert to office-based working. While many marketing campaigns are postponed or pulled, brands will be keen not to be forgotten by consumers to be well placed when restrictions are lifted. With the marketing mix likely to look very different from the norms, chief marketing officers will want to be reassured their spend is achieving the optimum return – Ebiquity’s core competence. It is too early to say how this will affect the group’s trading in FY20.
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Research: Healthcare
Hutchison China MediTech’s (HCM’s) investment case is focused on evolution into a global R&D and commercial-stage biopharma company with a marketed portfolio of innovation-led oncology drugs. 2020 is a golden year as HCM moves towards multiple domestic drug launches and is progressing key assets into registration studies globally. We expect surufatinib (NET) and savolitinib (exon 14 deletion NSCLC) China launches in 2020 and 2021, respectively, following in the footsteps of Elunate (thirdline CRC), which is establishing its presence by its inclusion on the National Reimbursement Drug List. HCM is investing in its oncology commercial presence in China and its global clinical and regulatory capabilities (in the US, Europe and Japan). 2022 and 2023 should benefit from global drug launches providing continued pipeline progression. We value HCM at $5.9bn.