ALB.L Regulatory News (ALB)

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

ADGORITHMS LTD

("Adgorithms" or the "Company")

Trading update

Adgorithms today announces a trading update for the year ended 31 December 2016.

The Company continues to execute its stated growth strategy and expects trading for the year ended December 2016 to be in line with management's expectations. Adgorithms' un-audited revenue for the period is expected to be approximately $16 million with an un-audited adjusted EBITDA loss of approximately $8 million. The cash balance as of 31 December 2016 is expected to be approximately $22 million reflecting the Company's focus on controlling cash burn.

The Company is pleased to report progress in the adoption of Albert 2.0, a pioneering AI based SaaS marketing platform. The platform, which is central to the Company's direct SaaS deployment strategy, continues to show good market acceptance. This has been supported by the Company's expanded operational presence in the U.S which now totals 15 people. The Company therefore continues to develop a good pipeline of new business opportunities, in line with our internal projections, including some well-known brands.

We recently won a 12-month contract with a multibillion dollar global food distribution company in the Philippines. This reflects our "land and expand" strategy whereby we aim to secure a contract to run a portion of the online media budget for a customer in a territory and then expand both to additional sub-brands within the territory and globally with that brand customer, after proving the technology in our first territory of operation. This customer elected to work with Adgorithms instead of a traditional online advertising agency, further confirming the trend of brands using Albert to take control of their media buying, whilst boosting ROI. Initial SaaS revenue from this contract in 2017 is expected to be $75,000 for three sub-brands of this global customer in the Philippines. SaaS currently represents a small but growing proportion of overall revenues and is expected to become increasingly meaningful over time.

Adgorithms' indirect trading business, which focuses on leveraging undervalued inventory on online advertising exchanges, continues to be volatile and challenging. This division is now led by two industry veterans and has continued in its effort to diversify the business and explore new growth opportunities.

The Company's Board of Directors remain confident in the overall long term growth prospects of the business.