31st Aug 2018 10:13
LONDON (Alliance News) - Entertainment industry contract provider FFI Holdings PLC said Friday its profit halved as costs associated with its recently listing hurt despite revenue jumping on acquisitions.
Shares in FFI were 27% lower at 50.60 pence on Friday.
For the year ended March 31, pretax profit halved to USD5.3 million from USD10.3 million the year prior. This was despite revenue rising to USD58.9 million from USD38.8 million the year before.
Profit performance was hurt by a sharp rise in administrative and exceptional costs. Administrative expenses rose to USD29.4 million from USD18.9 million the year prior primarily driven by a jump in staff costs.
Exceptional costs also rose to USD10.7 million from USD1.9 million the year before which was chiefly related to USD9.5 million in initial public offering costs.
FFI raised GBP59 million through its initial public offering on AIM in June. The IPO valued FFI at GBP236 million.
"Despite the headwinds in 2017, FFI achieved a number of its strategic goals and delivered on its plan to acquire complementary businesses which extend and diversify the company's offering," FFI Chief Executive Officer Steve Ransohoff said. "Growth via acquisition has played a major part in our evolution and we believe that the six acquisitions completed since IPO position the company well for future growth."
During the year, FFI acquired a number of businesses. In November it acquired EPS Cineworks for USD8.3 million. In December it bought Buff Dubs for USD1.1 million with a USD7.4 million buy of Reel Media later in the month. January saw it acquire Motorsports for USD1.9 million. Since the end of the financial year, it has also bought Signature Entertainment for USD5 million.
FFI does not pay a dividend.
"While costs have been higher than expected year to date, FFI is well-positioned for the future within an industry that is undergoing a period of profound change. With the rise of disruptors like Netflix and Amazon Prime and ongoing technological innovation driving a shift in the way that consumers view content, the needs of content producers and distributors have been fundamentally redefined," Ransohoff added.
Related Shares:
FFI.L