XLMedia PLC Conclusion of Strategic Review and Trading Update (9964X)
12 Maio 2016 - 3:00AM
UK Regulatory
TIDMXLM
RNS Number : 9964X
XLMedia PLC
12 May 2016
12 May 2016
XLMedia PLC
("XLMedia" or the "Group" or the "Company")
Conclusion of Strategic Review and Trading Update
XLMedia reaffirms commitment to AIM and reinforces growth
ambitions
-- Strategic review reinforced Board's belief in organic growth
opportunity and consolidation potential
-- The Board recommits to maintaining a progressive dividend policy
-- Current trading remains strong and continues to track in line with management expectations
XLMedia (AIM: XLM), a leading provider of digital performance
marketing services, today announces that further to the initiation
of a Strategic Review announced on 26 January 2016, the Board has
concluded that the best way of maximising value for shareholders is
by remaining listed in London as an independent company on AIM.
Strategic review
Since the Company's IPO in March 2014, the Company has
consistently delivered a strong financial performance, diversified
its revenue streams across different verticals and geographies,
invested in technology and other infrastructure to accelerate
organic growth opportunities, completed a number of successful
earnings enhancing acquisitions, and returned $21.25 million in
dividends to shareholders.
The Board initiated a Strategic Review to explore how best to
maximise value for all shareholders. Meanwhile, the actual
performance of the business continued as planned.
On 30 March 2016, XLMedia reported record full year results for
the year ended 31 December 2015, delivering a 76% increase in
revenue to $89.2 million, an 84% increase in profit before tax to
$24.3 million and a 61% increase in dividend per share of $0.05
compared to the prior year. XLMedia generated $28.4 million of net
cash and reported $42.6 million of cash on the balance sheet in the
year ended 31 December 2015.
It is this strong financial performance which underpins the
Group's strategic focus and has seen XLMedia establish itself as
one of the leading players in the performance marketing arena. As
result of the Strategic Review process the Board has concluded that
the best way of maximising value for all shareholders is to remain
listed in London as an independent company on AIM. Therefore, the
Board remains committed to the following growth strategy:
-- to continue to expand the Group's operational reach into new geographies and verticals
-- to continue developing its technology infrastructure that
accelerates organic growth and further enhances XLMedia's
reputation and competitive edge
-- to execute acquisitions which both strengthen and expand the
Group's operational footprint in what remains a broadly fragmented
market
Management continues to work to maximise shareholder value by
continuing to commit to expanding the Group's core offering through
a combination of ongoing investment and product development. The
Group also remains focused on acquisitive growth and continues to
evaluate a number of potential opportunities. It is this ongoing
confidence that underpins the Company's progressive dividend policy
and provides confidence in the near term trading prospects for the
Group.
Trading update
XLMedia has maintained its excellent start to 2016 with strong
demand for services reported across the Group's geographic
footprint. The Group believes that the combination of scale and
diversification will continue to support its growth. The Board
confirms that during the first four months of the year, the Group
continued to progress according to its plan in existing and new
verticals. Furthermore, developments in technology continue to
progress well and as planned. Therefore, the Board is pleased to
report that current trading remains in line with management's
expectations.
Christopher Bell, Chairman of XLMedia, commented:
"Having now undertaken a very thorough strategic review, the
Board has concluded that the best prospects for the business and
maximising shareholders' value are though remaining an independent
company on AIM.
"We are focused on ensuring we maintain our market leading
position, delivering a best in class service to customers whilst
attracting the best people in the industry. Being a quoted company
provides the best platform to deliver on that commitment and our
recent full year results with record revenue and PBT growth support
this decision.
"We look forward to updating shareholders of our continued
progress over the coming months."
Takeover Code
As a result of the termination of the Strategic Review, the
Formal Sale Process previously announced on 26 January 2016 has now
ceased, and the Company is no longer in an Offer Period (as defined
in the UK Takeover Code) and, accordingly, the requirement to make
disclosures under Rule 8 of the UK Takeover Code has now
ceased.
For further information, contact:
XLMedia plc Tel: 020 8817
Ory Weihs 5283
Cenkos Securities plc (Nomad and Tel: 020 7397
Joint Broker) 8900
Ivonne Cantu / Camilla Hume / Callum
Davidson
Liberum Capital Limited (Joint Tel: 020 3100
Broker) 2000
Neil Patel / Chris Clarke
Vigo Communications Tel: 020 7830
Jeremy Garcia / Fiona Henson 9700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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