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Mirriad Advertising PLC on Friday said it is considering launching a formal sales process as it is conducting a formal strategic review, viewing itself as ‘significantly undervalued’, as it underlined a pivot to the US from China.
Mirriad Advertising shares rose 9.9% to 5.00 pence each in London on Friday morning.
Mirriad Advertising is a London-based advertising technology company, which provides customers with an artificial-intelligence powered platform that inserts products and signage formats after content is produced.
Explaining its strategic review, the company said: ‘Based on the announcements made by Amazon and NBCU at the US advertising ’upfronts’ in May 2022, Mirriad expects that further major companies will enter the in-content arena, and that they will make similar announcements at the US advertising ’upfronts’ in 2023. The company believes that ultimately this will lead to an industry-wide development and adoption of in-content advertising as a new advertising format.’
Mirriad has been developing the market for in-content advertising in the US since 2020.
The company noted that it has not received any potential offer and is not in discussions with any potential offeror. Options other than being acquired include raising additional capital and seeking a strategic partner.
Mirriad confirmed that revenue in 2022 was £1.5 million, down 25% from £2.0 million in 2021.
‘Revenues have firmly pivoted from China to the US over the last two years, with US revenue increasing from 14% of total revenue for FY 2020, to 44% in FY 2021 and 78% in FY 2022,’ the company noted.
Cash and cash equivalents as at December 31, 2022 fell to £11.3 million, better than anticipated, from £24.5 million a year ago.
Mirriad aims to deliver the majority of £2.5 million planned annualised cost savings in 2023.
By Tom Budszus, Alliance News reporter
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