How many times have you seen or heard the expression “according to LADBible”? Investors can now take advantage of that connection.
Born from an idea for a social media publishing business conceived by students at the University of Leeds in 2012, the company is now the world’s most viewed and engaged publisher on Facebook and the largest publisher on TikTok. Masu.
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What is LAD?
For this group, LADs are everyday heroes who play an active and constructive role within their communities.
We advocate for different people, including celebrities and viewers, and try to get everyone on the same stage.
An astonishing 39% CAGR
Over the past four years, LBG Media (LON:LBG)’s revenue has grown at a compound annual growth rate of 39%.
The group describes itself as the world’s largest youth publisher.
“In recent years, we have significantly grown our multi-platform audience and established ourselves as the world’s largest youth publisher.
We reach 64% of UK 18-34 year olds, a valuable demographic that has traditionally been difficult for advertisers to reach.
Our data insights and position as a trusted voice for our engaged audiences make us attractive to brands looking to advertise to them. ”
Analyst predictions
Zeus Capital analyst Rachel Birkett said the company had sales of £63m and adjusted pre-tax profits of £13.5m for the year to the end of this month, giving it a profit of 5.3p for the year. It is estimated that Share.
The UK-based multi-brand, multi-channel digital youth publishing group is on track to boost its sales to £69.4m and profits to £17.2m (equivalent to earnings per share of 6.4p) this year.
For the year to December 2024, forecasts are for sales of £76.4m, profits of £18.9m and profits of 7.0p.
This “asset-light” business is scalable and highly cash-generating.
An example of how the group can generate cash is shown by estimates of a net cash balance of around £31m at the end of the current year, with a figure of £52.8m at the end of 2023. It has been suggested that the total for 2024 is £68.1m – this compares to the group’s current market capitalization of £251m.
Broker Liberum Capital will hold a Technology & Media Conference on January 17th, and LBG Media will be one of seven exhibitors.
shareholder
Taking a quick look at the major shareholders, those that already hold shares include abrdn (6.88%), Canaccord Genuity (4.22%), and Slater Investments (3.83%). Makuma Investments’ controlling shareholder Mahmoud Kamani holds 20.21%.
Group co-founder and CEO Solly Solomou has further increased his holdings, with the purchase of a further 50,000 shares (100 pence each) announced on 23 December. The shares amounted to 86.68 million shares, representing 41.99% of the group. capital.
The market’s rapid reaction to the news sent the group’s shares soaring nearly 14%, closing the day up 14.5p at 121.5p.
Conclusion – Record a summary of your viewing
There is no doubt that this group’s share price has the potential to rise significantly, but after the recent surge, it would be wise to monitor the performance and be prepared to jump on the inevitable profit-taking pullback. Maybe.
