(Alliance News) - Ascential PLC on Monday reported a sharp drop in 2019 profit, due to acquisition costs, but revenue grew.
Shares in the marketing and media firm were up 6.3% in early trading in London on Monday at 376.40 pence each.
For 2019, Ascential recorded pretax profit of GBP10.2 million, a 65% drop on GBP28.9 million in 2018.
Revenue rose 19% year on year in 2019 to GBP416.2 million from GBP348.5 million. Sales revenue jumped 31% to GBP158.4 million, while Marketing revenue added 17% to GBP135.9 million. Product Design revenue was 11% higher at GBP86.5 million.
Sales, marketing & administrative expenses increased 34%, however, to GBP244.4 million. This includes GBP41.6 million in exceptional items on deferred contingent considerations related to its recent acquisitions.
Ascential declared a total dividend of 5.8 pence in 2019, flat on 2018's distribution.
Chief Executive Duncan Painter said: "In 2019, we enjoyed a year of consolidation and progress. This follows a reshaping of our business in 2018 to support long-term growth, notably through the sale of the Exhibitions business, the acquisitions of WARC, BrandView and Flywheel Digital and the re-set of Cannes Lions and MediaLink's strategic re-alignment. We are pleased to report a successful performance in 2019, growing both revenue and profit and delivering well on the priorities we set out."
Looking towards 2020, Ascential is targetting organic revenue growth, through its Money20/20 platform and billings growth in its Edge e-commerce business.
Painter added: "Looking forward, we believe we are well positioned to continue to drive strong performance in our scaled and structurally growing markets. In 2020, we expect to deliver strong organic growth with group revenue in the range of GBP425 million to GBP455 million and adjusted Ebitda margins of between 30% and 32%," compared to 30.9% in 2019.
By Paul McGowan; paulmcgowan@alliancenews.com
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Ascential (ASCL)