Rightster Group plc- Final Audited Results 2015

April 13th, 2016

13 April 2016

 

Rightster Group plc

(“Rightster” or the “Company”)

Final Audited Results for 2015

Rightster, the global multi-platform network for digital video, today announces its final audited results for the twelve months ended 31 December 2015.

Key Highlights

In 2015, the Group integrated the companies acquired in 2014 and began the process of implementing cost efficiencies. Further client wins have been added to the network and the Group continues to see encouraging growth across its net revenue and gross profit.

In Period

  • Net Revenue has increased by 68% to £14.6 million (2014: £8.7 million), largely due to the acquired companies
  • Gross Profit has risen by 56% to £6.1 million (2014: £3.9 million)
  • Annualised cost savings of £8 million implemented
  • EBITDA loss of £(13.6 million) in 2015 compared to £(15.3 million) in 2014
  • Impairment charge to intangible assets of £36.0 million following a change in strategic direction and subsequent review of business model
  • Cash outflow from operating activities has reduced by 48% to £8.3 million (2014: £16.0 million)
  • New management and board changes were implemented on 16 November 2015 with the support of major shareholders, in order to strengthen the Group and deliver value to shareholders

Post Period

  • With the backing of new and existing shareholders, the new management team successfully completed a £10 million fundraise (before expenses) on 6 January 2016 to execute their new strategic plan
  • As part of the strategic plan, a restructuring was completed in Q1 2016 that will add a further £4 million of annualised cost savings
  • Revenue growth on a significantly reduced cost base
  • At the end of March 2016, the Group had £9.7 million in cash
  • Based on unaudited numbers, the Group has experienced a 76% improvement in adjusted EBITDA* loss for the period Jan- Mar ’16 compared to the same period in the prior year (currently at £(0.9 million) compared to £(3.7 million) for Jan – Mar ’15)
  • Management propose a rebranding and change of name to ‘Brave Bison Group plc’ (“Brave Bison”)

*excludes exceptional items, restructuring costs and share-based payments

Ashley MacKenzie, CEO of Rightster, said: “Since rejoining the business at the end of last year, we have already turned a corner. Our losses are narrowing, and with a reduced cash burn we are preparing to launch into strategically valuable business lines with more funds at our disposal than we had planned. Re-naming the company to Brave Bison, emphasising our creativity and independence, is a statement of our intent to build a bolder and more valuable business. We look forward to the future with great excitement.”

 

For further information please contact:

Rightster Group plc

Ashley MacKenzie (CEO) / Niall Dore (CFO)                            via FTI Consulting

Stockdale Securities Limited

Richard Johnson / Robert Finlay                                                           Tel: 020 7601 6100

FTI Consulting

Charles Palmer / Rob Mindell                                                               Tel: 020 3727 1000

About Rightster Group plc

Founded in 2011, Rightster makes it simple for Content Owners, Creators, Brands, Publishers and Platforms to unlock the value of online video, whether on a licenced, ad-funded, direct to consumer or paid placement basis.

The Company’s 2015 Annual Report, together with the Notice of Annual General Meeting convening a meeting at 12:00 p.m. on 9 May 2016, will be despatched to shareholders later today and will be available from www.rightster.com.

 

For the full report see here