Immedia results to be 'significantly below' expectations due to Covid-19
By Michele Maatouk
Date: Monday 06 Apr 2020
(Sharecast News) - AIM-listed Immedia warned on Monday that 2020 results are likely to be "significantly below" any previous market expectations as it takes a hit from the coronavirus outbreak.
The supplier of multi-media content and digital solutions noted that it has "substantial" exposure to the retail sector and a number of clients, including JD Sports Fashion, IKEA and Subway, which have closed all or most of the stores serviced by the group. In addition, to preserve cash, a number of its customers have cancelled or deferred project work indefinitely.
"Despite a challenging 2019 (in which Brexit uncertainty and associated economic unrest in the latter half of that year contributed to spending decisions being deferred or cancelled) revenue and operating profit for the year ended 2019, which remain subject to audit, were broadly in line with market expectations," it said.
Immedia said it had seen "many positive signs" at the start of this year and that in the first quarter the business was performing in line with its expectations.
"Despite this encouraging start to the new financial year the impact of Covid-19 will now have a material adverse effect on the group," it said. "The inherent uncertainty of the situation also means that the company is unable to give precise guidance at this time on the likely 2020 outturn, other than that it will be significantly below any previous expectations in the market."
The company said it will delay the publication of its results for the year to the end of December 2019, which had previously been due the week of the 20 April, as "a result of the currently challenging operating environment" and its recent restructuring efforts.
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