Ebiquity - FY21 results, acquisitions and placing

Ebiquity’s FY21 results showed good growth in revenue, up 13%, and a strong recovery in operating margin to 7.5% (operating loss in FY20). The figures were accompanied by two acquisitions, Media Management (MMi) in the US and MediaPath, a Sweden-based global media consultancy. Ebiquity is paying initial consideration of £6.1m for MMi and £15.5m for MediaPath, funded from cash and proceeds of an intended £15.0m placing at 53p. Management anticipates the acquisitions will be earnings enhancing in FY22, with group prospects boosted by the scaling up in the US and the wider use across the group of MediaPath’s proprietary technology platform. Our forecasts are under review.