13th Nov 2019 10:27
(Alliance News) - Bonhill Group PLC on Wednesday said 2019 results "will not reach the levels previously anticipated" due to "challenging" conditions.
The stock was down 33% in morning trade in London at 36.00 pence a share.
Looking forward, business-to-business media firm Bonhill said 2019 revenue will be flat year-on-year as a result of the "significant" investment. Bonhill now expects earnings before interest, taxes, depreciation, and amortization for the year to be at GBP2.5 million, "materially" below market expectations.
The company said difficult macroeconomics and a turbulent trading environment continued to hurt Last Word Media - which Bonhill bought in April - resulting in a cost reductions, expected to realise GBP1.0 million of savings.
In addition, Bonhill said three members of Last Word's senior management team have been replaced and day-to-day leadership has been passed to Simon Stilwell, chief executive.
Turning to InvestmentNews, the AIM-listed company said this business has undergone a "great deal of change" since the arrival of Christine Shaw, InvestmentNews's new CEO, in August, and largely a new sales team.
However, Bonhill said InvestmentNews will fall short of its target for the year, despite return of normalised trading patterns, with the shortfall being mainly in traditional media.
"The business has had a difficult 2019, which has continued into the final quarter," said Stilwell. "However the new technology platform and the calibre of the people we have recruited combined with the underlying work in improving our offering puts the group in a stronger position."
By Evelina Grecenko; [email protected]
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