11th Dec 2024 11:48
(Alliance News) - Aferian PLC on Wednesday highlighted a "year of transformation" as the firm cut costs and grew revenue in the second half of its financial year.
The Cambridge, England-based business-to-business video streaming company said it expects revenue in the financial year that ended November 30 to be about USD26 million, down 46% from USD47.8 million in the prior year.
Amino, its streaming services and software as a service device management platform, is expected to generate around USD14.2 million, with 24i, its end-to-end intelligent streaming solutions platform, accounting for the remaining USD11.8 million.
Aferian reported an improved second-half performance as it swung to positive adjusted earnings before interest, tax, depreciation and amortisation of about USD2.0 million from an adjusted Ebitda loss of USD2.4 million in the first half.
The stock was up 11% at 3.62 pence on Wednesday morning in London.
Aferian credited its USD4.4 million turnaround to second-half revenue growth and headcount-driven cost reductions, with 24i delivering several new customer wins and Amino achieving higher-than-expected sales orders for its Enterprise Video and Digital Signage devices.
Net debt also improved materially throughout the financial year, falling by 16% to USD12.5 million at November 30 from USD14.9 million at May 31.
Through a combination of Amino's contracted order book and 24i's annual recurring revenue, USD18 million in revenue for next financial year has already been committed, Aferian said.
Chief Executive Mark Carlisle commented: "FY24 marks a year of transformation and progress for Aferian with both the Amino and 24i businesses becoming Ebitda positive and cash flow generative in the second-half.
"That strong second-half performance reflects both the dedication of our teams to delivering for our customers and increasing demand for our products. As a result of new customer wins and an increase in sales orders in the second half of 2024, we expect this strong momentum to continue into 2025."
By Christopher Ward, Alliance News reporter
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