Online gambling marketer XLMedia (XLM:AIM) remains in the hunt for deals according to chief executive Ory Weihs as it reveals an 83% advance in first half revenues to $36.4 million. The shares rise 8.3% to 65p.
Weihs tells Shares that 'at any given time we are looking at potential deals' as the company looks to put the $40 million of cash house broker Liberum estimates it has available to work. The counter has suffered due to a number of high profile profit warnings in the wider advertising tech space as well as the near collapse of contract for difference broker Plus 500 (PLUS:AIM).
Weihs says: 'Hopefully the issues with the ad tech industry will fade away but in the mean time we'll continue doing our job. We don't need to issue shares to do deals so we're not too concerned about the share price for now.'
He adds that guidance for in-line full year numbers is 'conservative' even though consensus was upgraded post the $7.36 million acquisition of rival Marmar Media announced in June (16 Jun). The company is set to report its interims at some point in September.
Liberum reiterates its 'buy' recommendation and 103p price target. 'After several company profits warnings in the marketing and advertising technology sector UK mid cap investors have decided to take a backseat rather than try and pick the winners and losers. Given, XLM’s track record of earnings delivery and M&A we believe the company is a winner and investor perception will shift. We continue to view upside in the shares towards 100p.'