20th Jan 2020 12:18
(Alliance News) - Bonhill Group PLC said on Monday 2019 was a difficult year for the company, but it remains optimistic after a "promising" start to 2020 with improved client engagement.
Bonhill shares were down 13% in London at 32.12 pence each on Monday.
In a trading update for 2019, the business-to-business media company said revenue is expected to be GBP24.4 million, compared to GBP8.0 million for the nine months ended December 2018.
The company expects earnings before interest, tax, depreciation and amortisation to be GBP2.3 million, compared to GBP900,000 for the nine months ended December 2018.
This is lower than market expectations, Bonhill noted, as approximately GBP250,000 of custom marketing contracts which had been expected to be delivered in December will now be delivered in the first quarter of 2020.
Bonhill changed its financial year end from March to December to align with InvestmentNews, which was acquired in August 2018.
Bonhill said it will incur exceptional integration and restructuring costs of GBP2.8 million, due to the planned integration of InvestmentNews and Last Word Media, bought in April 2019, and increased restructuring costs relating to personnel changes in both businesses.
The company said InvestmentNews has a healthy pipeline of opportunities, following the "significant changes in personnel" made during the year.
Last Word Media's performance during the year was hurt by unrest in Hong Kong, resulting in a "much lower percentage" of business than at the same period a year ago.
However, "following the changes made since its acquisition in April 2019, and the much improved backdrop", performance in 2020 is anticipated to be "materially ahead" of 2019.
Simon Stilwell, Bonhill chief executive, said: "2019 was a difficult year for the group with the specific issues in UK fund management and fund flow, changes in senior leadership across the business and the uncertain political situation in Hong Kong all contributing."
"We have seen a promising start to 2020 with improved client engagement, order flow and an increased level of request for proposals across all the businesses," Stilwell added.
By Loreta Juodagalvyte; [email protected]
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