Aferian PLC on Thursday said its loss narrowed during its most recent financial year, despite a decline in revenue, as a result of cost reduction work.
Shares in Aferian were up 18% at 2.65 pence each in London on Thursday afternoon. The stock remains down 79% over the past year, however.
The Cambridge, England-based business-to-business video streaming company said its pretax loss narrowed to $14.5 million during the financial year that ended November 30 from $64.7 million the year before.
Revenue, on the other hand, declined 45% to $26.3 million from $47.8 million, which was largely driven by a fall in revenue within its Amino PayTV division.
During the second half of the year, Aferian completed cost reduction programmes that generated around $6 million in annualised cost savings, which prompted a return to positive adjusted earnings before interest, tax, depreciation and amortisation, and cash generation.
Cost of sales decreased 56% to $10.0 million from $22.8 million, and operating expenses were reduced by 68% to $28.8 million from $89.0 million.
Aferian’s adjusted loss before interest, tax, depreciation and amortisation for the year was $700,000, swung from earnings of $1.6 million a year prior. This was the result of a $2.3 million loss in the first half, and a $1.6 million Ebitda profit in the second half.
‘Aferian is now a turnaround story. We have started [financial year] 2025 strongly and are significantly ahead of the same period last year,’ said Chief Executive Officer Mark Carlisle.
‘Given the increased level of sales orders already received, we expect a greater than 10% revenue growth in FY2025, positive adjusted Ebitda for the year, and positive free cash flow. Once new financing terms are secured, the company will be well positioned for the future.’
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