17th Dec 2015 08:22
LONDON (Alliance News) - Digital marketer Adgorithms Ltd saw its shares plummet on Thursday after it warned its margin was lower than anticipated in the final quarter of the year which will "be reflected" in its full year earnings.
Adgorithms shares were trading down 19.4% to 25.0 pence per share on Thursday morning, one of the worst performers in AIM.
The company said revenue for the full year remains on track, but said its earnings before interest, tax, depreciation and amortisation will reflect its Ebitda margin in the fourth quarter being below expectations.
The company said its cash balance at the end of 2015 will also be in line with expectations at around USD29.0 million.
Adgorithms said it has now completed its detailed review of the company and will continue to focus on accelerating its primary Software-as-a-Service business, which provides brands with control and higher returns from online advertising campaigns. It also plans to broaden its customer base and supply partners to strengthen indirect revenue derived from online advertising exchanges, it said.
"Management report a marginal improvement in the online advertising market with the return of inventory volumes for online advertising exchanges and demand from media buyers returning," said the company. "This improvement however is still below anticipated volumes expected within the Company's indirect revenue channels."
On a more positive note, the company said it has added Harley Davidson to its customer list, with the motorbike firm using the company's SaaS platform.
By Joshua Warner; [email protected]; @JoshAlliance
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