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Immedia Group's annual losses widen after contract delays
Bruno Brookes' Immedia Group has warned of wider losses after a weaker finish to the year due to contract delays and an acquisition underperformed.
The provider of in-store radio, other audio-visual and digital solutions for retail clients, said it had enjoyed a "solid" calendar year, with sales up around 36% on the previous year's £2.6m and still no debt on the balance sheet.
However, losses are likely to swell to £0.6m for the calendar year from the £0.19m in the first half after December was "weaker than budgeted" due to the start of certain projects being pushed back from their expected start in the fourth quarter.
Brookes, a former BBC Radio 1 DJ, stressed that while "somewhat disappointing", he was "confident that this is temporary" and expects the revenue from these contracts will come on stream during the course of the 2018 financial year.
Some of the loss is also attributable to September's £0.2m acquisition of AVC Media from administrators of Aberdeen-based AVC Media Enterprises, where despite progress being made in its integration, the trading performance "has been slower to materialise than we expected".
Brooks remains optimistic however that "the full benefit of integration, cost reduction and business development initiatives at AVC Immedia will be seen over 2018 and into 2019", while also pointing out that all existing clients have been retained and new clients attracted over the course of last year.
"We remain confident in our strategy and will continue to develop our exciting and innovative business model, which we believe will see us broaden our offering and become 'partner of choice' for many leading brands."