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Rightster Group will get on front foot this year, says boss

Published: 06:37 13 Apr 2016 EDT

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Watching videos online or on a smart device has almost become part of everyday life...

This year will be remembered as one in which online video and marketing specialist Rightster Group PLC (LON:RSTR) "turned a corner", chief executive Ashley MacKenzie told Proactive Investors.

"It will be the year where we make real, tangible steps to profitability," he said.

The group's metamorphosis to where it now stands began last year, with an overhaul of the management and a strategic review, which culminated in the bid to restructure and rationalise costs.

Moving away from pure play tech...

Key to its new plans is moving to a technology enhanced firm rather than a 'pure play' tech group, so it runs and reaps the rewards from operating its own video brands.

"We wanted to move the company further up the value chain.

"We want to start  taking ownership of the content and intellectual property  that we work with - that we help build audiences for  - that we help create advertising revenues for and capture that advertising revenue ourselves," said MacKenzie.

"We are very good at doing it for content partners and brands, but we want to increasingly turn  those skills and technologies  on a global basis to our own advantage."

In final results today, Mackenzie had said: "Driven by grand ambitions but poor execution, Rightster has never been adept at doing simple things."

Three pronged approach..

He outlined the AIM firm's three-pronged plan to: simplify the business, focus on organic revenue growth by adding true value to its partners, and create new IP-rights allowing the group to take ownership of its content and IP.

And it has the financial wherewithal to make a start, after ending 2015 with £3.1mln in cash and raising £10mln in a placing with new and existing investors in January this year.

Mackenzie said the money would also be used to build a "war chest" for any other acquisition opportunities - key to the firm's growth so far.

The acquisition in 2014 of social media video group  Viral Management Limited and digital video firm Base79 Limited largely led to a 68% increase in group net revenue to £14.6mln for 2015 (2014:£8.7mln).

Advertising revenue last year rose to £12.9 mln from £6.3 million, driven by an increase in high value brand deals, including Procter & Gamble, Universal Pictures International and United Airlines.

Gross profit increased 56% to £6.1 million (2014: £3.9 million) and cost savings of £8mln were achieved. The company reduced its EBITDA loss (underlying earnings loss) to £13.6mln from a  loss of £15.3mln in 2014.

But the pre-tax loss increased to £54.4mln compared to a loss of £18.7mln a year earlier.

Here comes Brave Bison..

In  keeping with  the change of direction, the new make-up of its management and partners,  and new focus, Mackenzie also said the firm planned to change its name to Brave Bison, subject to shareholder approval at its AGM on May 9.

"In a world increasingly dominated by huge technology platforms such as Facebook, SnapChat and YouTube, it is critical to have a defensible, scalable strategy creating long-term value for all stakeholders in our business," the company boss added.

Shares added 4.83% on the day to stand at 3.8p.

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