B90 Holdings Reports Improved EBITDA but Faces Cash Concerns in 2024 Results
Why we think this is neutral
B90 Holdings has shown significant improvement in its financial performance, transitioning to EBITDA profitability and increasing revenue by 16.4%. The successful shift to a B2B model and securing over 200 partnerships are positive indicators. However, the company's financial position remains precarious, with a negative working capital and reduced cash balance. The acknowledged material uncertainty regarding going concern is a significant red flag. While operational improvements are evident, the company's ability to sustain growth without additional funding is questionable. The neutral sentiment reflects a balance between operational progress and financial fragility.
Key Points
- Revenue increased by 16.4% to €3.52 million in 2024
- Achieved EBITDA profitability of €0.7 million, compared to a €3.3 million loss in 2023
- Net loss reduced to €1.7 million from €5.5 million in the previous year
- Secured over 200 B2B partnerships with major industry players
- Negative working capital position of €0.2 million at year-end
- Cash balance decreased to €0.36 million from €0.83 million
- Material uncertainty regarding going concern acknowledged
- Successful transition to a B2B-focused operational model
- Expects further organic growth in 2025
- Focus on customer acquisition and expanding partnerships
Summary
B90 Holdings plc, an online marketing company for the gaming industry, has reported its final results for the year ended 31 December 2024. The company has shown significant improvement in its financial performance, with revenue increasing by 16.4% to €3.52 million and achieving EBITDA profitability of €0.7 million. This turnaround is largely attributed to the successful transition to a B2B-focused model and securing over 200 partnerships with major industry players. However, the company faces significant financial challenges, including a negative working capital position of €0.2 million and a reduced cash balance of €0.36 million. The directors have acknowledged a material uncertainty regarding the company's ability to continue as a going concern, which could necessitate additional funding if revenue targets are not met. Despite these concerns, the company remains optimistic about future organic growth driven by its streamlined operational approach and innovative marketing strategies.