REG - Merit Group PLC - Trading Update

MeritAnnouncement

25/04/2024 07:00

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RNS Number : 9366L  Merit Group PLC  25 April 2024

25 April 2024

Merit Group Plc

("Merit", the "Company" or the "Group")

Full Year Trading Update

Merit Group Plc (AIM: MRIT), the AIM-listed data and intelligence business,
today issues an update on trading for the financial year ended 31 March 2024
(FY24).

The Group expects to report revenues in FY24 of approximately £19.9m (FY23
£18.6m) and Adjusted EBITDA(1) of around £4.0 million (FY23 £2.7m),
approximately 10% ahead of market expectations(2).

Based on the unaudited management accounts, Profit before Taxation and
non-recurring items for the year ended 31 March 2024 is expected to amount to
£1.2m (FY23: Loss of £0.2m), the first Profit before tax for the year
reported since FY18.

The Group had net debt of £1.9m as at 31 March 2024 (31 March 2023: £2.6m).

Commenting on the results, CEO & CFO Phil Machray said: "These results for
the first full year post the 2022 disposals clearly show the potential of our
two operating businesses.  MD&T has achieved double digit revenue growth
and an Adjusted EBITDA margin in excess of 20%, whilst Dods Political
Intelligence has achieved a 30% Adjusted EBITDA margin from flat year-on-year
revenues.  Together, these businesses have delivered almost £5 million of
trading EBITDA(3), which together with a focus on overhead reduction, have
allowed the Group to deliver Adjusted EBITDA up 50% year-on-year. Our current
activities are focussed on further revenue and earnings growth in the new
financial year."

 

1 Adjusted EBITDA is calculated as earnings before tax, depreciation,
amortisation of intangible assets, share based payments and non-recurring
items in respect of continuing operations

2 Based on the £3.6m Adjusted EBITDA forecast contained in the most recent
brokers research note, published on 8 November 2023

3 Trading EBITDA is Adjusted EBITDA from Operating business segments prior to
Central PLC costs.

Further information on the Company can be found at www.meritgroupplc.com
(http://www.meritgroupplc.com) .

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

 For further information, please contact:
 Merit Group plc
 Mark Smith - Chairman                         020 7593 5500

 Phil Machray - CEO and CFO                    020 7593 5518

 Canaccord Genuity Limited (Nomad and Broker)  020 7523 8150

 Bobbie Hilliam

 Harry Pardoe

 

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