Sparks

LBG Media continues to impress with its progress, achieving group revenue growth of 22% in the year to September. There was particularly strong progress in its Direct business, where LBG Media works with brands to connect with young adults online and clearly fulfils a need not met through more traditional channels. With nine clients now spending over $1m, the appetite for the offering is demonstrably scalable. As ever, the real prize is the US market, where the combination with Betches is starting to have impact. The investment needed to take advantage of this opportunity has had a dilutive effect on the adjusted EBITDA margin, which remained healthy at 28% (down from 30%) for the period.

Cash conversion at 105% has resulted in a year-end (now to September) cash balance of £27.2m, providing plenty of firepower to continue investing and building the business.