Trading Update and New Funding
Following an assessment of preliminary results for the first two months of Q1 2023 and updated forecast numbers for Q1 and Q2, Ayima Group has determined it is necessary to make an announcement regarding current trading conditions. The first two months of the quarter have seen a significant reduction in profitability, due to extraordinary delays in routine contract renewals for long-term clients and some client terminations. Several clients affected have quoted unease about macroeconomic conditions such as inflation and downturns in the tech industry and have been reluctant to commit budgets to new marketing activity.
The nature of the contract delays has made it impossible to mitigate the losses by reducing headcount or other costs. Ayima Group estimates that the result of these events will negatively impact its results in Q1 and Q2 of the current year and now expect that EBITDA in Q1 will show a loss in the region of -4.8 MSEK. Current forecasts indicate that the losses will be short-lived and that Q2 EBITDA will return to positive territory, with a profit of approximately 1.6 MSEK. Due to the volatility and short-term effect of these issues, Ayima does not deem it prudent to publish forecasts for Q3 and Q4 at this stage, however it is expected that the remainder of the year will be more strongly profitable. The current new business funnel is extremely strong and some announcements of significant new business wins are expected in the near future.
In ensure that there is an extra cashflow cushion in the short term, Ayima has taken out an additional 5.0 MSEK credit facility with DBT. The loan has a term of 3 years and an annual interest rate of 10% + STIBOR. It is not expected that there will be any further cash requirements and the company remains healthy.
///
For further Information:
CEO/VD Michael Jacobson
+44-20 7148 5974
press(at)ayima.com
www.ayimagroup.com
About Ayima
Originally founded in 2007, Ayima is a digital marketing agency with around 150 employees across its offices in London, New York, San Francisco,Stockholm and Vancouver. Ayima have created a number of market-leading software tools that are used in by clients and agencies around the world, including ‘Updatable’, ‘Redirect Path’, ‘Page Insights’, ‘Pulse’ and ‘Appotate’.
Ayima is listed at Nasdaq First North under the “Ayima B” ticker. Certified Adviser is:
Eminova Fondkommission AB
+46 (0)8 – 684 211 00,
This information is insider information that Ayima Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on March 17, 2023.