S4 Capital shares plummet 46.1% to 120.8p on profit warning due to significant investment in hiring and expansion
S4 Capital said like-for-like revenue/net revenue growth in H1 was in line with full year run-rate expectations of 25%. However, "it is clear the Company's EBITDA and EBITDA margin will be below its expectations for the first half of the year." the company said.
"Continued significant investment in hiring and consequent expansion of the company's cost base, particularly in the Content practice, have had a negative impact on first half Ebitda and Ebitda margin," the company explained. As a result, S4 Capital is lowering its expected target EBIDTA for the full year to c. £120m, below current analyst forecasts of £154-165 million.
Guild Esports shares jump 27.2% to 2.1p on Coca-Cola sponsorship deal
Guild Esports announced the signing of a one-year global sponsorship deal with The Coca-Cola Company. The soft drinks giant is the sixth sponsor signed by Guild and will be the company's "Official Soft Drinks & Hydration Partner" effective immediately. Guild Esports is the first ever European esports organisation to sign a sponsorship deal with Coca-Cola. The total contract value is payable in cash, but the amount was kept confidential.
Frasers Group shares rise 26.6% to 949.5p on profits surge and expansion plans
Frasers Group said its FY22 profit and revenue increased substantially as it recovered from Covid-19. Not counting the acquisition of Studio Retail finalised in February, pretax profit increased to £366.1m from only £8.5m last year.
The profit increase was driven by "the strong reopening of stores after lockdown, new FLANNELS stores, continued growth in online in the premium lifestyle segment, continued operating efficiencies, and the FY21 comparative including Covid-19 related lockdowns, mitigated to some extent by property related impairments of £227.0m" the company said. Adjusted pretax profit, excluding Studio Retail, was £344.8m compared £39.9m the year before.
East Imperial shares rise 22.2% to 2.75p on strong H1 revenue
East Imperial said H1 revenue increased substantially due to "strong sales and operational progress in key markets."
In H1, the company sold 95,780 cases globally across 28 markets, resulting in revenue rising 32% YoY, driven by both the addition of new customers and strong demand from its existing base.
In the company's established APAC market, sales in the period were ahead of the Board's expectations as Covid restrictions continued to lift in key markets, with New Zealand and Singapore now returning to pre-Covid levels of demand. In the US, revenue was 37% higher than budget, and June was the company's largest ever month of sales.