Aferian Regulatory News (AFRN)

13 December 2021

AFERIAN PLC

("Aferian", the "Company" or the "Group")

Trading Update, Banking Facility & New Chairman appointment

- Strong financial performance, with strong YoY exit ARR growth of 42% -

- New multi bank committed loan facility of up to $100m -

Aferian plc (LSE AIM: AFRN), the B2B video streaming solutions company, is pleased to provide a trading update for the year ended 30 November 2021.

Trading update

The Group expects to report that all its key financial metrics have tracked ahead of the prior year, and in line with Board expectations, representing an overall strong trading performance. As well as delivering further progress against its stated 2025 growth strategy, the Group has also successfully navigated well-documented global supply chain challenges.

At a headline level, the Group expects to report1:

This improved net cash position comes alongside the Group's expectation that it will report a net working capital outflow for the year as a whole. Whilst there is no underlying change to our debtor profile or cash generated, navigating the well-known supply chain issues in the period was challenging and the timing of some device shipments was pushed very close to our year end. This means cash will be collected after the end of the period.

In addition to the strong growth in exit ARR, the Group has further visibility of next year's devices revenue as the Group's customers place orders up to 60 weeks in advance in response to extended lead times in the supply chain.

New banking facilities

The Group has agreed a new banking facility with Barclays Bank plc, Silicon Valley Bank, and Bank of Ireland. This increased facility of $50m, split evenly across the new three bank club, also includes a further $50m available by way of an accordion. The increased facility will support the Group in achieving its 2025 strategy, particularly with regards to the execution of targeted acquisitions. The new facility has a three year term with options to extend by a further one or two years.

The existing bank facility with Barclays Bank plc remains undrawn and it is expected that the new facility, subject to the closure of customary conditions, will be fully available to the Group by the end of December 2021.

Appointment of new Chairman

As announced in June 2021, Karen Bach notified the Board of her intentions to step down as Non-Executive Chairman following nearly six years of service on the Group's Board of Directors.

The Group is pleased to announce that, following a rigorous search process, the Board has appointed a new Non-Executive Chairman, Mark Wells, who will take up the position and join the Board of Directors on 1 January 2022. Mark brings a wealth of experience, gained through his 30-year career, guiding UK growth technology businesses in value creation. He brings extensive boardroom experience, including as Non-Executive Chairman for the inertial navigation specialists, Oxford Technical Solutions Limited, and for the predictive maintenance software provider, Senseye. In addition, Mark was a Non-Executive Director for Kofax, where he supported the business in its transition from a hardware company into a software-led business specialising in intelligent automation for digital workflow transformation. He was previously CEO of visual effects company, Image Metrics.

Notice of results

Further detail on the Group's performance for the year ended 30 November 2021 will be provided at the Company's full year results for the year ended 30 November 2021 expected to be announced during the week commencing 7 February 2022.

Donald McGarva, Chief Executive Officer of Aferian plc, said:

"This financial year Aferian has delivered an overall strong performance, with each of the key metrics tracking ahead of last year. Our 2025 strategy continues to evolve our business into a leading video streaming solutions company with more predictable and higher-quality recurring software and services revenue. The visibility we have into next year's performance is high. I am particularly proud of our team's delivery here, especially given the backdrop of tough supply chain challenges all organisations have had to manage.

"On behalf of the Board and the entire Aferian team, I am pleased to welcome Mark Wells to our business as Non-Executive Chairman. He joins us on 1 January 2022 at a moment of real strength and real ambition. We look forward to benefiting from his contribution as we push on towards our 2025 goals. Mark will take over from Karen Bach, who steps down on 31 December 2021. On behalf of the Board, I would like to thank Karen for her service and support. We have all benefitted from her energy and perspective."

Mark Wells, Non-Executive Chairman Designate of Aferian plc, said:

"I have a real enthusiasm for working with ambitious software and technology companies and as such am excited to be joining the board of Aferian. Their 2025 strategy for moving into the centre of streaming services and pay TV is impressive, and I welcome the opportunity to join the Company as it continues to make progress executing its ambitious strategy and capitalising on structural shifts in the TV market. I look forward to bringing my 30 years of experience within the software industry to help the Company grow and achieve its targets."

1All numbers in this section are unaudited.

2Adjusted operating profit is a non-GAAP measure and excludes amortization of acquired intangible assets, exceptional items and share-based payment charges.

The following information is disclosed pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies.

Mark Benjamin Wells (66 years old) has been a director or partner of the following companies during the five years preceding the date of this announcement:

This announcement contains inside information and for the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055 (as it forms part of the laws of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended from time to time), the person responsible for arranging for the release of this Announcement on behalf of the Company is Mark Carlisle, Chief Financial Officer.

For further information please contact:

About Aferian plc

Aferian plc (AIM: AFRN) is a B2B video streaming solutions company. Our end-to-end solutions bring live and on-demand video to every kind of screen. We create the forward-thinking solutions that our customers need to drive subscriber engagement, audience satisfaction, and revenue growth.

It is our belief that successful media companies and services will be those that are most consumer-centric, data driven and flexible to change. We focus on innovating technologies that enable our customers stay ahead of evolving viewer demand by providing smarter, more cost-effective ways of delivering end-to-end modern TV and video experiences to consumers. By anticipating technological and behavioural audience trends, our software solutions empower our customers to heighten viewer enjoyment, drive growth in audience share and ultimately their profitability.

Aferian plc has two operating companies: 24i, which focusses on streaming video experiences, and Amino, which connects Pay TV to streaming services. Our two complementary companies combine their products and services to create solutions which ensure that people can consume TV and video how and when they want it. Our solutions deliver modern TV and video experiences every day to millions of viewers globally, via our growing global customer base of over 500 service providers.

Aferian plc is listed on the London Stock Exchange Alternative Investment Market (AIM: symbol AFRN). Headquartered in Cambridge, UK, the company has over 350 staff located in offices in San Francisco, Amsterdam, Helsinki, Copenhagen, Madrid, Porto, Brno, Buenos Aires, and Hong Kong. For more information, please visit www.aferian.com