Digital performance marketing services provider XLMedia Plc (LON:XLM) have seen their share price rally in the early knockings of morning trading on Wednesday, as the company announced that it intended to continue its share buyback programme which it began in December 2018.
The company added that its trading has been in line with its expectations for the financial year, and that its focus remained on increasing its exposure to high margin publishing activities and opportunities.
XLMedia describes itself as, ‘Operating globally across a variety of verticals including online gambling, personal finance and more, the Group uses proprietary tools and methodologies to generate high value users for customers in return for performance based payment models.’
‘Over the past decade, the group has both created and acquired a leading portfolio of assets in the publishing division,’ said chairman Chris Bell in his speech notes for the company’s AGM.
‘We are now focusing our efforts to fully leverage this core expertise to build a more comprehensive footprint across regulated gambling markets, in addition to our growing presence in the financial services vertical in North America.’
‘XL Media continues to be a highly cash generative business with a strong cash balance.’
‘Therefore, the board continues to evaluate the group’s allocation of capital policy in order to both support our growth ambitions and to maximise shareholder value.’
‘As a consequence of the current weakness in the company’s share price and pending approval at today’s AGM granting the company authority to buy shares, we intend to continue the share buyback programme that was initiated in December 2018.’
‘I would also like to reiterate our commitment to maintaining a progressive dividend policy.’
‘We also continue to evaluate selective publishing acquisition opportunities, which could potentially accelerate earnings growth.’
‘We appreciate the ongoing support of our shareholders and remain focused on delivering on our full year numbers for 2019.’
The company’s shares are currently trading up 1p or 1.96% since trading began, at 52p a share. Berenberg analysts’ most recent update was that it ‘Reiterates’ its ‘Buy’ rating on XLMedia stock.