Radical changes | Stunning results | Another takeover
It’s always extremely difficult for a business to radically change its operating model, but one rental business covered here has done just that. Hopefully, it will start to deliver the desired rewards. Elsewhere, there were stunning results from a manufacturer of computer products as well as news of yet another takeover approach for an AIM listed company. We also assess the cash flow death spiral of another AIM company. (Premium)
Dianomi: modestly valued, but what’s the upside? Dianomi (AIM:DNM), the provider of “native digital advertising services to premium clients in the Business, Finance and Lifestyle sectors”, announced predictably awful results. For the year ended 31 December 2023 revenue fell 16% to £30.2m due to reduced traffic across their publisher base. Gross margins for this business are typically low, as it is effectively working on an agency basis with publishers. They fell back further to 24.7% (27.3%), largely due to a contract amendment with a major publisher partner. The reported loss was £2.9m after £1m of reorganisation costs with the free…