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(Sharecast News) - One Media IP reported stable full-year revenue in a trading update on Friday, following a strategic divestment to sharpen its focus on core operations.
The AIM-traded company noted that it recently completed the disposal of its technology subsidiary TCAT to Round Group in exchange for a shareholding in Round.
TCAT, which reported an operating loss of £0.57m in the prior financial year, contributed net assets of £0.26m as of October 2023.
The board said the divestment aligned with its strategy to focus on acquiring and monetising digital music rights and affiliated video business activities.
For the 2024 financial year, the firm said it expected to deliver revenue of about £5m, unchanged from 2023, with net revenue holding steady at £3.4m.
EBITDA from continuing operations was forecast to rise by 15% to £2.1m, which it put down to effective cost management.
However, year-end cash reserves decreased to £0.5m from £1.2m at the end of 2023, as the company streamlined its operations.
The disposal of TCAT would allow One Media to prioritise growth in its music rights business, the board explained, while consolidating cash reserves to support future strategic objectives.
"Despite a challenging market backdrop, we delivered robust revenues and achieved a significant improvement in EBITDA during last year, underlining our ability to extract value from our music rights portfolio while carefully managing costs," said chief executive officer Michael Infante.
"The strategic disposal of TCAT puts us in a much stronger position for 2025, as we refocus the business on our core expertise of music rights management.
"To this end, our immediate priority will be to restore our cash reserves while we continue to assess opportunities to enhance the portfolio and deliver value for shareholders."
At 1130 GMT, shares in One Media iP Group were up 3.74% at 4.41p.
Reporting by Josh White for Sharecast.com.
