Shares jump as LadBible owner rediscovers its swagger
Shares in LadBible owner LBG Media jumped 16% after the publisher revealed it will largely deliver on its promises of a strongly profitable second-half of the year.
The jump is in stark contrast to the response to its half-year figures, released in late September, when a 78% fall in earnings resulted in a 25% fall in its share price.
The Manchester-based online specialist has endured a tough first year as a stock market-listed company. It floated last December at 175p-per-share, which saw shareholders pocket £81m while the group raised £30m.
But the £360m valuation at its IPO has been under constant and significant pressure throughout the year and was as low as £100m a few weeks ago.
However a bullish trading update sent its share price up again, closing at 79p, after it said it expects to report 2022 revenue of around £63m and adjusted EBITDA of approximately £16m.
This is much closer to its early summer forecasts of £65.4m revenue and £20.1m earnings than had been feared after its lacklustre first-half figures.
In a statement, LBG Media said: “As anticipated, revenue growth has accelerated in the seasonally stronger second half and group revenue is expected to have grown by over 20% in this period vs the prior year.
“There has been growth across both direct and indirect segments against the backdrop of a challenging economic environment.”
The group had sought to cut costs in the autumn as it responded to its struggles and a difficult economic backdrop. The measures included making 10% of its workforce redundant, understood to be around 50 people.
But it is now in more confident mood and expects to deliver growth next year “given the momentum seen in H2, and cost reduction exercise completed in November 2022”.
