(Alliance News) - Immedia Group PLC on Monday revised its 2019 earnings expectations downwards after some business opportunities did not materialise into contracts during the second quarter.
The marketing consultancy firm said, given the weaker than expected trading result in the six months to the end of June, it now expects that the results for 2019 will be below market estimates.
The AIM-listed company currently anticipates that the revised revenue for the financial year will be not less than GBP4.1 million resulting in loss before interest, taxes, depreciation, and amortization in the region of GBP300,000. However the company anticipates the outturn to be better, it said, given the current pipeline.
In 2018, Immedia generated revenue of GBP4.7 million and Ebitda of GBP262,588.
Immedia explained that it anticipated that several of the business opportunities would materialise into contracts during the second quarter of 2019. However, contract conversions are taking longer than first anticipated, the company noted, therefore impacting the budgeted performance of the first half of the year.
"Whilst we remain confident that the expected proportion of new business opportunities will occur, we cannot be certain of the timing, or that a substantive level of this business will come on stream in the current financial year," the company said in its statement Monday.
Immedia said it has been "encouraged" by growth in its Aberdeen business and expects the positive performance in this division to continue throughout the year.
Looking ahead, Immedia said it remains positive despite a cautious trading environment. The company said it will continue to focus on tightly managing its operating costs and driving efficiencies to ensure that the trading of the business remains secure.
"We are also leveraging client engagement whilst our pipeline of opportunity continues to be healthy across our key targets including the development of Omni-channel. We remain optimistic that some of these will be delivered over the short to medium term and will keep shareholders abreast of developments as appropriate," the company added.
Immeida shares were trading 16% lower on Monday in London at 18.00 pence each.