Electric Word swings to profit as it slims down operation

Specialist information business Electric Word posted its audited results for the year to 30 November on Tuesday, with group profit for the year of £9.2m- swinging from a £2.3m loss - including a £10.7m profit from discontinued operations.

The AIM-traded firm reported £13.9m net cash inflows from disposals, leaving the group with £13.0m net cash at year-end.

Continuing revenues reportedly increased by 16% to £2.8m, driven by subscriptions growth of 18%, while adjusted EBITA from trading activities - before central costs - increased by 124% to £0.34m.

Central costs increased to £1.3m from £0.7m due to lower re-charges to business divisions.

Following the disposals, cost reductions were underway and due to complete in first half of 2017, Electric Word’s board confirmed.

“We ended 2016 in a transformed position,” said chief executive Julian Turner.

“The group is now focused solely on the business of sport as a result of the successful disposals of iGaming Business, Optimus Education and Speechmark Publishing, and we are able to report a £9.2m profit for the year and a year-end cash balance of £13m.”

Turner said the sole remaining business, SportBusiness, achieved revenue growth of 16% and adjusted EBITA growth of 124% in 2016.

“Current trading is in line with the Board's expectations, with SportBusiness continuing to perform strongly and planned central cost reductions now taking effect, not least as a result of our move to new premises later this month.”