Immedia posts FY loss, upbeat on AVC Media Enterprises acquisition benefits

Shares in Immedia are down more than 7% after it reversed to a full-year pre-tax loss of £184,372, from a previous profit of £5379, but was upbeat on the benefits of its AVC Media Enterprises acquisition last year.

"Since the year end we have already seen the anticipated benefits of the AVC acquisition coming through, both in terms of revenue from its own clients and additional services," it said.

"We expect that to continue and develop over the course of the year," said Immedia, which posted revenue of £2.61m for the year, from £2.37m previously.

Immedia added that a reduction in full-year EBITDA was due to the addition of overhead costs from AVC, prior to merger related synergies being achieved and the lag in realisation of contribution from its new client wins after the expiry of some other contracts.

"The year has also brought some frustrations as contracts have expired in the normal course of events; substantial new contracts have been won, but with some delays to planning and expected delivery of revenues," the company said.

"However, these new business wins now demonstrate that our revenue and profit growth difficulties are behind us."

The company also confirmed it had appointed Simon Leathers as a non-executive director with immediate effect.

At 12:09 GMT, shares in AIM-quoted Immedia were down 7.46% to 31p each.