LONDON (Alliance News) - Marketing and media consultancy firm Ebiquity PLC on Monday kept its dividend flat as it swung to an annual loss.
Ebiquity's pretax loss was GBP2.5 million for 2018, from a profit of GBP2.7 million the year prior. Underlying, pretax profit fell to GBP5.2 million from GBP7.9 million.
Revenue was GBP89.6 million, after GBP87.4 million the year before. From continuing operations, revenue rose 8% to GBP69.4 million.
Ebiquity will pay an annual dividend of 0.71 pence per share, the same as a year prior.
The swing to a loss, Ebiquity said, is partly due to increased headcount and investment made into "key practices", which did not deliver anticipated revenue growth. Some units, it continued, did not achieve financial goals with some posting revenue declines.
During the year, Ebiquity sold its Advertising Intelligence business, a "pivotal" moment.
The main Media business increased revenue by 5% to GBP54.2 million, with growth particularly strong in the US. Analytics & Technology revenue climbed 19% to GBP15.2 million.
"2018 has been a challenging, transformational and transitional year. Against the background of revenue growth, the reduction in the continuing business operating profit was disappointing and was a result that clearly fell short of our goals," said Chief Executive Michael Karg.
"The company now has greater financial flexibility, a more streamlined business and a strengthened management team. We are focused on growing and expanding our Media and Analytics & Tech practices and improving our profitability."
"Ebiquity operates in a growing, dynamic and ever-evolving media market and is well-positioned to serve advertisers' needs and drive growth through the provision of specialist advice, proprietary tools and high-quality service," Karg added.
Shares were 6.1% lower on Monday morning at 42.26 pence each.
Ebiquity (EBQ)