Ebiquity (AIM: EBQ)

Currency in GBP

Last close As at 06/02/2023

GBP0.56

−1.25 (−2.18%)

Market capitalisation

GBP65m

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

The shifting dynamics of the major social media and tech platforms, along with fundamental changes in privacy and data usage make it all the more important that brands and advertisers understand their marketing effectiveness. New channels such as TikTok and Advanced TV and the growth of commerce media increase the need for independent guidance in navigating optimising and benchmarking marketing spend. That need is unlikely to diminish with harsher economic circumstances.

Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Alan Newman

    CFO

  • Nick Waters

    CEO

  • Rob Woodward

    Chairman

Balance Sheet

Forecast net debt (£m)

8

Forecast gearing ratio (%)

18

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 16.7 23.1 (0.9)
Relative 12.0 11.9 (2.3)
52 week high/low 71.5p/43.0p

Financials

The FY22 acquisitions of MediaPath and MMi should help management deliver on two of the four corporate goals; improving operating efficiency and expanding the geographic footprint, with the former adding a sophisticated tech platform and the latter doubling the size of the group’s business in the important North American market. FY22 results are anticipated to be in line with market expectations. The shares have outperformed peers and the sector, but the valuation remains at a discount. In our view, the improving business quality and prospects for margin growth are not reflected in the share price.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2020A 55.9 1.8 (1.3) (1.9) N/A 127.6
2021A 63.1 6.8 4.1 2.7 20.7 5.9
2022E 77.0 13.6 8.1 5.3 10.6 43.7
2023E 89.0 17.5 11.5 7.0 8.0 6.0

Thematics

Digital Marketing and Internet Media Technology Platform

TMT

MediaWatch – January 2023

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

TMT

Direct tech investors

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