Ebiquity - Navigating complexity

Ebiquity’s interim figures reflect its transitional phase post the £26m AdIntel disposal, with revenues flat against the prior period on continuing business and a broadly stable operating profit margin (pre-unallocated costs). We have trimmed our FY19 and FY20 revenue expectations but maintained our operating profit forecasts. The focus is now on building operating margin through careful cost management, and consolidating and building on the group’s positioning as a trusted advisor to CMOs. The shares are priced at a clear discount to smaller marcomms companies on an EV/EBITDA basis, nearer parity on P/E.