25 April 2024

Merit Group Plc

("Merit", the "Company" or the "Group")

Full Year Trading Update

Merit Group Plc (AIM: MRIT), the AIM-listed data and intelligence business, today issues an update on trading for the financial year ended 31 March 2024 (FY24).

The Group expects to report revenues in FY24 of approximately £19.9m (FY23 £18.6m) and Adjusted EBITDA¹ of around £4.0 million (FY23 £2.7m), approximately 10% ahead of market expectations².

Based on the unaudited management accounts, Profit before Taxation and non-recurring items for the year ended 31 March 2024 is expected to amount to £1.2m (FY23: Loss of £0.2m), the first Profit before tax for the year reported since FY18.

The Group had net debt of £1.9m as at 31 March 2024 (31 March 2023: £2.6m).

Commenting on the results, CEO & CFO Phil Machray said: "These results for the first full year post the 2022 disposals clearly show the potential of our two operating businesses.  MD&T has achieved double digit revenue growth and an Adjusted EBITDA margin in excess of 20%, whilst Dods Political Intelligence has achieved a 30% Adjusted EBITDA margin from flat year-on-year revenues.  Together, these businesses have delivered almost £5 million of trading EBITDA³, which together with a focus on overhead reduction, have allowed the Group to deliver Adjusted EBITDA up 50% year-on-year. Our current activities are focussed on further revenue and earnings growth in the new financial year."

1 Adjusted EBITDA is calculated as earnings before tax, depreciation, amortisation of intangible assets, share based payments and non-recurring items in respect of continuing operations

2 Based on the £3.6m Adjusted EBITDA forecast contained in the most recent brokers research note, published on 8 November 2023

3 Trading EBITDA is Adjusted EBITDA from Operating business segments prior to Central PLC costs.

Further information on the Company can be found at www.meritgroupplc.com.

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.