Exhibitions and information services business Ascential (ASCL) fell 4.5% to 354p as its 2020 numbers bore the scars from Covid-19.

The company reported wider annual losses as pandemic-linked disruptions to its events - including the Cannes Lions advertising festival - hurt revenue and led to asset writedowns.

For the year ended 31 December 2020, pre-tax losses widened from £7.9 million to £184.3 million as revenue fell 31% to £301.1 million.

Revenue was heavily affected by coronavirus, but the company said the results were in line with its expectations.

‘The impact of the pandemic-related restrictions in 2020, on both our events and strategic advisory business drove an overall revenue decline of 31%, while adjusted EBITDA dropped by 73%,’ the company said.

DIGITAL COMMERCE STRENGTHS

Looking ahead, the company reported ‘strong trading’ in the first two months of the year, and said it had ‘confidence’ of further good progress in the year ahead.

Shore Capital’s Roddy Davidson said: ‘We are cautiously positive on Ascential’s short-term prospects, although we note the uncertain environment... and expect another year of Covid-19 disruption to its events businesses.

‘More broadly (and importantly), we believe the group is increasingly well-placed to become a leading player in the provision of specialist information to the digital commerce economy, a focus that has been strengthened by recent M&A activity (with more of the same likely) and complements strong positions in several other sectors.

‘We also like its focus on quality businesses with proprietary IP and attractive medium-term organic growth and cash flow potential - all of which bodes well for its performance when the macro backdrop improves.’

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Issue Date: 15 Mar 2021