Key points
- Strong growth in core Data & Insights business – revenue up 14% (on pcp) to $18.4m
- Media business growing steadily – revenue up 3% (on pcp) to $6.1m
- Strategy to simplify the business and focus on core growth units progressing well – Media Trading business was sold in October 2018 and the Performance ANZ business was sold in March 2019
- FY2019 revenue (incl. discontinued businesses): $38.4m (FY2018: $52.4m)
- FY2019 EBITDA (incl. discontinued businesses): ($0.5m) (FY2018: $0.7m)
- Additional debt of $3m raised in February 2019 with existing lender, along with a $2.6m bridging short-term loan in June 2019 as Company moves to new debtor financing provider
- Capital restructuring initiatives being considered to reduce debt exposure
Pureprofile Limited (ASX: PPL or the Company) provides an update to its FY2019 results (unaudited) ahead of the release of its Appendix 4E and full-year results.
Following the reduction to the Company’s cost base in FY2018, further restructuring initiatives were undertaken in FY2019. The Media Trading business was sold in October 2018 via a share buy-back and in March 2019, the sale of the Performance ANZ business was completed.
The sale of these businesses simplifies the Company’s offering, reduces the Company’s cost base and ensures a focus on its core strengths in Data & Insights and Media. Both these divisions continued to show growth.
| Profit & Loss $A million | |||
| Continuing businesses |
FY18 |
FY19 |
Growth |
| Data & Insights |
$16.1m |
$18.4m |
14% |
| Media |
$5.9m |
$6.1m |
3% |
| Performance |
$3.4m |
$2.2m |
(35%) |
| Other revenue |
– |
$0.6m |
– |
| Total revenue |
$25.4m |
$27.3m |
7% |
| Gross profit |
$15.0m |
$16.1m |
7% |
| GM% |
59% |
59% |
– |
| Other costs |
($17.5m) |
($16.8m) |
4% |
| EBITDA (continuing businesses) |
($2.5m) |
($0.7m) |
72% |
| Discontinued businesses | |||
| Revenue |
$27.0m |
$11.1m |
(58%) |
| Gross profit |
$9.2m |
$3.1m |
(66%) |
| GM% |
35% |
29% |
(6%) |
| Other costs |
($6.0m) |
($3.0m) |
50% |
| Actual EBITDA |
$0.7m |
($0.6m) |
(162%) |
-
The discontinued businesses comprise the Media Trading business (which was sold in October 2018) and the Performance ANZ business (which was sold in March 2019).
-
In the UK, the Data & Insights business unit performed strongly (with growth of 10%), however the Performance business unit declined YoY due to an unforeseen reduction in sales resourcing and capability.
- ‘Other revenue’ includes proceeds from the sale of the Media Trading and Performance ANZ businesses.
- The total EBITDA contribution for the discontinued businesses was $0.1m. Had the businesses continued, it is expected to have contributed negative EBITDA.
Breaking the results down on a half-year on half-year basis:
| Profit & Loss $A million | |||
| Period ending 30 June |
H2FY18 |
H2FY19 |
Growth |
| Data & Insights |
$7.9m |
$9.0m |
14% |
| Media |
$2.6m |
$3.2m |
23% |
| Performance |
$1.6m |
$0.8m |
(50%) |
| Other revenue |
– |
$0.3m |
– |
| Total revenue |
$12.1m |
$13.3m |
10% |
| Gross profit |
$7.6m |
$8.0m |
5% |
| GM% |
63% |
60% |
(3%) |
Whilst the retained Performance business in the UK continued to lag, the focus on the remaining core growth areas of the business has generally been successful. This is validated on a year on year basis:
During the year, the Company increased its debt facility with the existing lender by $3m. A further bridging loan of $2.6m has been provided to support the Company as it transitions to a new debtor financing provider. Total debt as at 30 June 2019 was $16.5m.To address the high-level of debt and put Pureprofile on a stronger financial footing, the Company is exploring capital restructuring initiatives and other strategic options.
CEO commentary
Pureprofile CEO, Nic Jones, said: ‘This has been a challenging year but we are happy with the performance and growth of our core business units. Having sold the non-performing businesses Pureprofile is a much stronger company.
We are confident in the continuing success of our turnaround and look forward to the year ahead.’
The Company’s Appendix 4E and full-year results, along with FY2020 guidance, are expected to be released towards the end of August 2019.
– ENDS –
