19 Jul 2018 07:00
Be Heard Group plc
Pre-close trading update
Be Heard, the digital marketing services group, today announces a pre-close trading update for the six months to 30 June 2018.
Highlights
· Group revenues in excess of £14 million, +70% vs Last Year.
· Like for like revenue growth of 15%.
· Notable wins from Aviva, GSK, blu, and Equifax.
· Be Heard converting new business as a Group alongside individual company successes.
· EBITDA guidance adjusted to reflect investment in business development, service capacity and provision for client spend volatility.
· Cost reductions implemented to support investment and underpin H2 2018 and 2019.
· Latest industry estimates suggest an uptick in UK marketing and advertising expenditure in H2. Digital continues to drive market growth.
The Group recorded strong overall growth in revenues and +15 per cent on a pro-forma basis, in the six months ended 30 June 2018. This was driven by notable client gains and increased spend from existing client relationships. Wins such as Aviva, GSK, blu and Equifax were secured against major competitors, reflecting demand for our integrated, end-to-end model. This growth has been particularly encouraging when set against a backdrop of rising economic uncertainty and a resultant slowdown in marketing activity.
First half and full year earnings progress will not mirror the high rate of revenue growth. We expect our margins to reflect the increased costs associated with winning new business, uncertainty around contract timing and moreover, client spend volatility. To mitigate this, we have begun a process of reducing costs, streamlining our business and centralising Group functions where appropriate. We expect to see the benefits of these actions in the second half of 2018, with the full effect in 2019.
The Board now expects adjusted EBITDA1 for the year ending 31 December 2018 to be in the range of £3.0m and £3.3m on revenue of circa £29.0m.
The Board remains confident that Be Heard is well positioned to take full advantage of the demand for integrated, end-to-end marketing services.
Half year results announcement
Be Heard will announce its half year results for the six months to 30 June 2018 on 18 September 2018.
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Note 1: Adjusted EBITDA is Earnings Before Interest Tax Depreciation and Amortisation and excludes; share based payments charge, abortive costs and restructuring/ redundancy costs.
Enquiries
Be Heard Group plc +44 20 3828 6269
Peter Scott, Chief Executive Officer
Simon Pyper, Chief Financial Officer
N+1 Singer +44 20 7496 3000
Mark Taylor / Lauren Kettle
Dowgate +44 20 3903 7715
James Serjeant
FTI Consulting +44 20 3727 1000
Jamie Ricketts / Niamh Fogarty