Entertainment industry services provider FFI Holdings said Friday pre-tax profits nearly halved as margins came under pressure from rising costs.
For the year to 31 March 2018, pre-tax profit fell to $5.27m from $10.46m a year ago, and revenue rose 51.7% to £58.89m.
Annual profits were hurt by IPO-related and acquisition-related exceptional costs of $10.7m. While revenue growth was supported by first-time contributions from newly acquired businesses.
The company said it expected to report underlying earnings (EBIT) in a range of $20m to $22m for the financial year ending 31 March 2019. 'Despite the headwinds in 2017, FFI achieved a number of its strategic goals and delivered on its plan to acquire complementary businesses which extend and diversify the Company's offering. Growth via acquisition has played a major part in our evolution and we believe that the six acquisitions completed since IPO position the Company well for future growth,' said Steve Ransohoff, CEO of FFI Holdings. 'While costs have been higher than expected year to date, FFI is well-positioned for the future within an industry that is undergoing a period of profound change. With the rise of disruptors like Netflix and Amazon Prime and ongoing technological innovation driving a shift in the way that consumers view content, the needs of content producers and distributors have been fundamentally redefined.'
At 8:41am: (LON:FFI) FFI Holdings Plc share price was -18.5p at 50.5p