Transformation Update, XLMedia PLC, 2020-05-11
11 May 2020
(“XLMedia,” the “Group” or the “Company”)
XLMedia (AIM: XLM), a leading provider of digital performance marketing services, provides the following update regarding the Company’s ongoing transformation programme and announces appointments to the Group’s executive management.
As outlined in XLMedia’s full year results published on 22 April 2020, the Company is focusing on the following near-term investment priorities, which are to:
· Enhance the Group’s operating model to support and foster growth;
· Harness data and programmatic learning to create compelling consumer experiences;
· Expand its US sports and personal finance footprint through investment in infrastructure and resource alongside select acquisitions; and
· Utilise XLMedia’s expertise and experience to grow existing business verticals into new markets.
In support of executing the Group’s new strategy based around Quality over Quantity, management have now concluded a review of its core functions and associated headcount. As a result, management have identified a number of functions and roles which could be streamlined as the business seeks to leverage both automation and outsourcing, whilst also gravitating towards increased editorial. It is anticipated that these measures will deliver in excess of $5m of annualised savings for the Group in the current financial year, with the 2020 savings largely being offset by investment as listed above.
As part of the Company’s transformation programme, Sarah Clark, who joined XLMedia in February 2020 as Chief Transformation Officer, has been appointed full-time Chief Operational Officer, focusing on building the strategy function (specifically portfolio management), evolving the shared services model whilst continuing to drive operational efficiencies across the business.
In addition, Xen Lategan has been appointed as an interim technology consultant. Xen is an experienced technology executive, specialising in digital media, publishing and eCommerce having previously held positions at Microsoft and Google. More recently Xen was CTO for News International where he led the roll-out of its new digital teams, platforms and consumer channels. His primary focus has been to support the re-platforming of the de-ranked sites and oversee the re-organisation of the technology group.
Stuart Simms, Chief Executive Officer of XLMedia, commented:
“I joined XLMedia with the clear intention to orientate the Company towards a balanced portfolio of premium branded sites, in verticals and markets that deliver sustainable revenue growth. To support this transformation, we have been working diligently to augment our leadership team and operating structure, as well as to right-size the resources required for our business to operate most efficiently.”
“Our transformation plan continues to gather momentum, and I am pleased to share our progress with all our major stakeholders, alongside welcoming new talent to the business.”
The information contained within this announcement (the “Announcement”) is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this Announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Stuart Simms, Chief Executive Officer
Iain Balchin, Chief Financial Officer
Via Vigo Communications
Tel: 020 7390 0233
Cenkos Securities plc (Nomad and Joint Broker)
Giles Balleny / Max Gould
Tel: 020 7397 8900
Berenberg (Joint Broker)
Chris Bowman / Mark Whitmore / Simon Cardron
Tel: 020 3207 7800
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