AD1 Holdings Acquires Oliver Grace and Reports Positive Business Update
AD1 (AD1) Share Update July 2024 Monday 29th
AD1 Holdings Announces Acquisition of Oliver Grace and Business Update
AD1 Holdings Limited (ASX: AD1) has announced the acquisition of Oliver Grace, a multi-award-winning marketing agency, and provided a positive business update highlighting significant growth and profitability.
Instant Summary:
- AD1 Holdings acquires Oliver Grace for up to $2 million.
- FY24 revenue of $5.7 million and ARR growth of 35%.
- EBITDA positive in FY24 with expected increase in FY25.
- Cost reduction initiatives leading to $3.5 million annual savings in FY25.
- Planned private placement to raise $1.5 million for acquisition and growth.
Acquisition of Oliver Grace
AD1 Holdings Limited has announced the acquisition of Oliver Grace (OG), a multi-award-winning marketing agency. The acquisition is valued at up to $2 million, with an upfront cash consideration of $0.4 million and additional payments based on performance targets. OG has $1.5 million in annual revenue, is profitable, and has a strong client base that provides cross-selling opportunities for AD1.
Financial Performance
AD1 Holdings reported a revenue of $5.7 million for FY24, with an annual recurring revenue (ARR) growth of 35%. The company achieved positive EBITDA in FY24 and expects further growth in FY25. Cost reduction initiatives have led to $1.7 million in savings for FY24 and are projected to save $3.5 million annually in FY25.
Strategic Initiatives
AD1 Holdings has undertaken several strategic initiatives, including the strategic exit of USS and jobtale business units, cost reduction measures, and a focus on core HR software activities. The company plans to raise $1.5 million through a private placement to fund the acquisition of OG and support further growth.
Future Growth Prospects
The acquisition of Oliver Grace is expected to enhance AD1's capabilities and market presence. OG's expertise in digital product design, brand strategy, and content creation will complement AD1's existing platforms, driving further growth and profitability. The company aims to achieve free cash flow surpluses and profitability in FY25 and beyond.
The acquisition of Oliver Grace is expected to have a positive impact on AD1 Holdings' stock price as it enhances the company's capabilities and market presence. The strong financial performance and cost reduction initiatives also contribute to a positive outlook for the company. Investors may view this acquisition as a strategic move to drive growth and profitability in the coming years.
Investor Reaction:
Analysts have reacted positively to the acquisition of Oliver Grace, noting the potential for cross-selling opportunities and enhanced market presence. Investors are optimistic about the company's strong financial performance and strategic initiatives aimed at driving growth and profitability.
Conclusion:
Investors should monitor AD1 Holdings' progress in integrating Oliver Grace and achieving its growth targets. The company's strategic initiatives and strong financial performance provide a positive outlook for future growth. Subscribe to our newsletter for regular updates on AD1 Holdings and other stock market news.