XLMedia Announces Final Results as Cash Shell, Plans Further Capital Return
Why we think this is neutral
The company's final results present a mixed picture. On the positive side, XLMedia has successfully sold its assets and is now in a strong cash position, with plans to return capital to shareholders. The loss for the year has decreased significantly compared to the previous year. However, the company is no longer a going concern and will cease to exist after distributing its cash, which is a fundamental negative for long-term investors. The substantial decline in revenue and continued losses, albeit reduced, also weigh on the sentiment. Given these factors, a neutral sentiment seems appropriate as the positive aspects of cash distribution are balanced against the company's imminent dissolution.
Key Points
- Loss for the year reduced to $12.48 million from $47.05 million in 2023
- Revenue from discontinued operations fell to $17.68 million from $50.96 million
- Cash and short-term deposits totaled $35 million at year-end 2024
- £14 million returned to shareholders via tender offer in February 2025
- Further capital return planned before expected trading suspension on May 12, 2025
- Company to be delisted and liquidated following cash distribution
- No future operations or revenue generation planned
Summary
XLMedia PLC has released its final results as a cash shell following the sale of substantially all its assets in 2024. The company reported a loss of $12.48 million for the year, an improvement from the $47.05 million loss in 2023. Revenue from discontinued operations decreased to $17.68 million from $50.96 million. Importantly, XLMedia now has a strong cash position of $35 million as of December 31, 2024. The company has already returned £14 million to shareholders via a tender offer in February 2025 and plans a further capital return before the expected suspension of share trading around May 12, 2025. The company will ultimately be delisted and liquidated, marking the end of XLMedia as an operating business.