Ebiquity warns of flat profits
Marketing and media firm Ebiquity expects profitability to remain unchanged in its current trading year as it fulfils contractual obligations related to the sale of its advertising intelligence unit to Nielsen.
Ebiquity revealed on Tuesday that, following the disposal of its intelligence business, it was switching its focus to capitalise on "significant market opportunities".
The AIM-listed outfit said its management team would continue to concentrate on delivering scale benefits and operational alignment across the "more focussed business" but warned that, in the short-term, its cost base would continue to reflect the "need to fulfil contractual obligations to provide support services to Nielsen in relation to the disposed business".
Therefore, Ebiquity warned profitability for its continuing consultancy businesses would remain at a "similar level to the year just ended".
Trading in the calendar year was said to have been in line with its expectations, with net debt down 28.5% to £20m.
Chief executive Michael Karg said: "The group's management team is now focussed on seizing the significant market opportunities as well as on aligning our business following the divestiture."
"We look forward to continuing to drive growth globally in our core consulting business in media, analytics and tech."
As of 0900 GMT, Ebiquity shares had tumbled 9.84% to 55p.