Adsure Services announced a bumper increase in EBITDA and profit before tax for the full-year period ended 31st March after the internal audit and business assurance firm grew revenues and took action to control costs.
However, the most interesting element of today’s announcement for many investors may not be the 72% increase in profit before tax, but the update the company gave on the development of a Generative AI Large Language Model designed to enhance efficiencies for government-funded organisations.
Commenting on the AQUIS-listed company’s push to improve its technical capabilities in an effort to create operational efficiencies for its clients, Kevin Limn, CEO of Adsure Services, said:
“As part of our drive to improve efficiencies across the business, we have deployed an Innovate UK grant to develop proprietary Generative AI Large Language Model (LLM) technology specifically designed to enhance outcomes for our customers across government-funded organisations, including housing associations, healthcare services, emergency services, local governments and education institutions.”
Through its operating subsidiary, TIAA Ltd, Adsure Services provides government-funded organisations with a broad range of auditing and assurance services covering cyber security, HR, carbon emissions, IT systems, security management, and anti-crime.
Although Adsure is yet to release specific details about how the company will utilise an Innovate UK grant to help launch a Large Language Model, the successful implementation of such a service is likley to provide an additional source of growth for the company in the exciting world of Generative AI.
Indeed, in the full-year results released today, Adsure outlined a growth strategy with three core streams: ‘Organic growth in core markets, Accessing new markets for its existing range of services and Creating new technologies to revolutionise business assurance.’
Shareholders will eagerly await updates on the progress of the new technology.
Strong EBITDA and Profit before Tax growth
Beyond the group’s artificial intelligence developments, Adsure Services produced very respectable levels of growth in 2024FY. Revenue grew to £9.1m in the year to 31st March while profit before tax soared 72%.
“I’m delighted to report another year of growth for Adsure Services and TIAA Ltd,” said Vicky Davies, CFO of Adsure Services.
“Revenue for 2024 grew 3.4% to £9.3m (2023FY: £8.99m) and profit before taxation increased 72% to £471k (2023FY: £274k). Demonstrating action in cost control, our EBITDA margin improved to 9.4% (2023FY:7.31%).
“We have started the year strongly and will maintain our prudent approach to managing costs.”
The company has proposed a final dividend of 0.99p which will be paid later this year to add to the maiden interim dividend of 0.49p paid in April.
Despite only listing in London at the end of last year, the combination of the interim and final dividend infers a 5% dividend yield for the company.
Adsure generates recurring revenues from long-term contracts, which evidently provides the company with the confidence to pay dividends while pursuing a broad growth strategy.
“Our outlook is promising, and we have excellent visibility over our revenue in the years to come due to the long-term nature of our contracts, which deliver us recurring revenues,” Kevin Limn said.