Brave Bison Group plc
(“Brave Bison” or “the Group” or “the Group“)
Brave Bison Group plc (AIM: BBSN), the independent digital media & social video broadcaster, announces its trading update for the full-year 2016. After strong revenue growth of 38% in the first half of 2016 versus the first half of 2015, the second half of the year was challenging, with growth slowing to 7% versus the second half of 2015. The Group continued its cost restructuring efforts in the second half to reduce the cost base, whilst simultaneously continuing to invest in the ownership of intellectual property via owner operated channels and content.
Based on unaudited numbers for the full year:
· Net Revenue has increased by 22% year-on-year from £14.6m to £17.7m
· Gross profit has increased from £6.1m (42% margin) to £7.7m (43% margin)
· Adjusted EBITDA* loss has reduced by 79% year-on-year from £8.7m to £1.8m
· At 31 December 2016 the Group had £7.0 million in cash
*excludes exceptional items, restructuring costs and share-based payments but includes gains and losses on re-translation of foreign currency monetary balances. For the full year 2016 these amounted to a £0.9m gain (2015 £0.1m loss).
Revenues in 2017 will follow the difficult trend established in the latter part of 2016 and are expected to be substantially lower than those achieved in 2016 due to two material contract losses at the end of 2016 and the potential discontinuance of certain low margin business. The Group has continued its cost-rationalisation programme and in the fourth quarter of 2016 delivered a further £2.6m of annualised cost savings from reduction of headcount and property costs. The Group is now largely focussed on higher margin products in line with the stated strategy of moving up the value chain. The overall impact of the above is that it is expected to take a little longer than originally anticipated to achieve profitability.
The Group expects to announce full year 2016 results in the week commencing on Monday 27th March 2017.
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Brave Bison obligations under Article 17 of that Regulation.