Ascential Share News (ASCL)

(Alliance News) - Ascential PLC on Monday said its interim results beat internal expectations and also unveiled a share placing, eyeing further acquisitions.

"Ascential's results demonstrate excellent momentum, performing ahead of our own expectations and of market expectations, with organic revenue growth coming through strongly in our Digital Commerce, Product Design and Marketing segments," said Chief Executive Duncan Painter.

Revenue for the first half of 2021 jumped 37% to GBP175.1 million from GBP127.9 million a year ago.

Driving the performance was a 25% surge in Digital Commerce revenue to GBP59.7 million, with growth up 27% on a proforma basis, and Marketing sales more than doubling to GBP63.9 million from GBP26.4 million. Product Design sales dipped 1% to GBP44.3 million, but rose 3% on a proforma basis.

The business-to-business media and events firm slimmed its interim loss drastically to GBP7.7 million from a chunky GBP86.9 million a year prior. The firm took GBP78.3 million in adjusting items for the first half of 2020, which was reduced to GBP35.5 million in the first six months of 2021.

"Overall, we believe that our performance in this half demonstrates the strength of our strategic position, which has been further advanced by continued investment in our Digital Commerce capability, using proceeds from the disposal of the Built Environment & Policy businesses early in the half," said Ascential.

Ascential is targeting full-year proforma revenue growth of 30% for Digital Commerce and 5% to 6% for Product Design.

Notwithstanding pandemic uncertainty, Ascential believes it is "better placed than ever" to sustain strong organic revenue growth.

"We continue to see opportunities through acquisitions to enhance our organic growth, while continuing to build out our market leading capabilities," it added.

As it eyes further acquisitions, Ascential also revealed on Monday plans to conduct a placing of 35.5 million shares.

The placing will be conduct via an accelerated book build.

"The placing will provide Ascential with greater balance sheet flexibility to use its proven M&A playbook and execute on its strong pipeline of attractive, on-strategy target opportunities, predominantly in Digital Commerce, Ascential's most significant business opportunity," it said.

Ascential added that based on the "strength and strategic importance" of its acquisition pipeline, it has decided to keep capital for potential deals rather than pay an interim dividend. It will keep capital allocation priorities, including shareholder cash returns, "continually" under review.

Ascential paid no dividend for 2020.

Shares in Ascential closed up 1.1% at 454.40 pence in London on Monday.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.