Crossrider plc Trading Update (2330F)
July 26 2016 - 4:01AM
UK Regulatory
TIDMCROS
RNS Number : 2330F
Crossrider plc
26 July 2016
Crossrider plc
("Crossrider," the "Company" or the "Group")
Half Year Trading Update
Notice of Results
Trading update
Crossrider (AIM:CROS) announces that for the six months ended 30
June 2016 it expects to report revenues of approximately US$29
million. This is a 29% decrease compared with US$41 million for the
six months ended 30 June 2015. In line with the Board's
expectations, this is primarily due to the reduction in revenues
from the web extensions platform. The Group expects to report
EBITDA for the six months ended 30 June 2016 of between US$3.3
million and US$3.5 million. Net cash at 30 June 2016 was $70.0
million.
As expected, the Web business has continued to generate strong
gross margins, albeit at lower revenues than the prior year.
Following a review of existing operations by new Chief Executive
Officer Ido Erlichman, management has taken the strategic decision
to protect these gross margins and invest more in the long term
profitability of the app distribution platform. In order to
consolidate margins and distribute additional apps, the Board has
approved the decision to invest in development, sales resource and
customer service in the second half of the year.
The Mobile business has seen year-on-year revenue growth lower
than expected, although gross margins remain stable. As a result of
the review in July 2016, the Directors took action to reduce
headcount resulting in an annualised cash cost reduction associated
with the Group's mobile platforms of approximately $1.2 million per
annum.
The net result of the above actions of lowering the cost base
and tightening working capital will improve cash-flow. However,
both Revenue and EBITDA will be below current expectations for the
full year by approximately 15%. The Group's balance sheet is
strong, the business is cash generative and the Board is confident
in the Group's ability to execute strategic acquisitions.
Ido Erlichman, Chief Executive Officer of Crossrider, said:
"The immediate actions following management's review are
designed to increase the long term prospects and profitability of
the Group. I am pleased to report our actions have improved our
cash-flow and set the foundations for sustainable growth. The
Group's balance sheet remains strong affording Crossrider the
strategic platform to realise acquisitive growth.
"In my review I have found that Crossrider possesses a culture
of operational excellence, as well as quality talent which has
strength in depth. I look to the future with confidence, as does
everyone at Crossrider. I look forward to updating shareholders
with Crossrider's new strategic plan in September."
Notice of Results
The Company will announce its unaudited interim results for the
six month period ended 30 June 2016 on 20 September 2016.
- ends -
For more information contact
Crossrider plc
Ido Erlichman, Chief Executive
Officer
Mark Carlisle, Chief Financial
Officer
c/o Bell Pottinger +44 (0) 20 3772 2496
Shore Capital
Bidhi Bhoma
Toby Gibbs +44 (0) 20 7408 4090
Bell Pottinger
David Rydell
James Newman
Sam Cartwright
Vrudhi Patel +44 (0) 20 3772 2496
About Crossrider
Crossrider is a creator of digital advertising platforms
specialising in monetising web and mobile media through the use of
big data. The Company's web and mobile platforms power ad networks,
agencies and direct publishers and enable the delivery of relevant
digital advertising through the analysis of big data: making online
marketing significantly more efficient and cost effective.
The Group operates web and mobile platforms which generate big
data, enabling the development of a proprietary ad serving
algorithm and engine that can extract value from this data to
deliver relevant advertising to targeted users.
Crossrider's vision is to become the de facto standard platform
for delivering relevant web and mobile adverts to billions of
people, powering the next generation of digital advertising.
www.crossrider.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTPGUUUMUPQURQ
(END) Dow Jones Newswires
July 26, 2016 04:01 ET (08:01 GMT)
Kape Technologies (LSE:KAPE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kape Technologies (LSE:KAPE)
Historical Stock Chart
From Sep 2023 to Sep 2024