Ascential shares suffer after annual update

The price of shares in FTSE 250 data analytics outfit Ascential (LON:ASCL) tumbled 6.31% to 347.60p (as of 12:55 GMT) after the firm reported a 31% drop in revenues for the year ended 31st December. Adjusted EBITDA also fell by 74% for the period as margins declined substantially.

CEO Duncan Painter commented: “The last year has underlined the importance of our strategic focus: serving brands that operate in digital marketplaces. We were already operating in a highly digital world, and the fundamental shift towards online channels has only accelerated since the pandemic. This further drives demand for our data-driven insights in the three ways we support customers: creating the right products, maximising their marketing impact, and optimising their trading performance on eCommerce platforms.

“Despite the significant financial impact of Covid-19 on our business, I have been delighted by the business’s response to the pandemic crisis. Our people and their dedication to ensuring we serve our customers, and their flexibility to ensure the Company has not missed a beat, has been remarkable. We reacted quickly and decisively with measures that saw a 13% year on year reduction in our cost base whilst ringfencing continuing strong levels of investment in our innovative digital services.

“Digital Commerce is now our largest and fastest growing segment and is well placed to benefit from the structural gains arising from the acceleration in eCommerce adoption. While our two marquee events are ready for a recovery as conditions allow, the Covid-19 pandemic restrictions continue to influence the timing of a return to maximum participation at venues. The pace and effective delivery of vaccines will also be a critical factor. Nevertheless, the resilience and underlying momentum within the business model, combined with our strong balance sheet and strong trading in the first two months of the year, give us confidence of further good progress in the year ahead“.