Flexion files its 2023 Annual Accounts

LONDON, 18th of November 2024 – Flexion Mobile Plc (Nasdaq: FLEXM), the games marketing company reports that following the recent filing of its delayed 2022 accounts, the Company is pleased to report that it has now filed its audited accounts for the most recent 2023 financial year.

Corporate growth and highlights:

 

•   2% revenue growth to GBP 70.0m (2022: GBP 68.5m)

•   13% growth in Gross Profit to GBP 12.5m (2022: GBP 11.1m)

•   36% increase in Adjusted EBITDA to GBP 4.6m (2022: GBP 3.4m*)

•   Strong Cash Balance of GBP 11.1m (2022: GBP 13.8m) and Debt Free

 

Adjustments to Previously Reported Numbers:

The Company has also, in conjunction with its newly appointed auditors, taken the opportunity to review certain key accounting policies. 

As a result, and as detailed in the Company’s Annual Report released today, there have been changes to previously reported numbers where the Directors have reviewed their previous judgements and reflected in the revised figures above marked with an *.

For the financial year 2023, the net impact of the adjustments made was an increase in total comprehensive profit of £3.5m resulting in a revised profit of £2.1m compared to the loss of £1.4m reported in the Q4 2023 report released on 20 March 2024. The adjustment driving this increase is the release of part of the contingent liability held in relation to possible earnout payments related to the Company’s acquisition of Audiencly.

In addition, the Company has restated certain items in its 2022 accounts thereby reducing total comprehensive profit by £0.2m. This reduces profit in that period from £1.2m to £1.0m which is the net impact of the adjustments made. These adjustments are described in detail in the Company’s 2023 Audited Annual Report, with the most material items being related to a recalculation of the cost of share-based payment awards, the inclusion of a provision relating to a Key Customer offset by the release of a provision relating to earn out payments for 2022 for the Company’s acquisition of Audiencly.

The Company is pleased to note that the Audit Opinion for 2023 is positive, with a qualification solely related to the consequential impacts of the Limitation of Scope imposed by management in 2022 to avoid further delay in the filing of those accounts. The full Auditor’s Report can be found in the 2023 Annual Accounts published today.

 Words from the Chairman:

 

I am delighted to report another year of strong growth across the Group building on the achievements delivered in 2022.

 

In addition to the strong Sales performance, it’s particularly pleasing to note that our cash conversion remains excellent in both of our business units allowing us the ability to make future investments in strategically important initiatives when the opportunity presents itself.

 

One of the defining moments of 2023 was when we launched the top-grossing mobile game in the world - in our channels. Since then, Flexion’s alternative distribution service has been gaining considerable traction with top developers. As a result, our sales pipeline is stronger than ever, and we are expecting to convert some of these leads in 2024.

 

Equally we have seen an excellent performance from Audiencly, our influencer marketing business with year-on-year revenue growth of 24%. Along with the revenue growth we are also starting to note marketing synergies between the influencer marketing and distribution activities as we integrate our services, this bodes well for the future as we accelerate these efforts.

 

In terms of the general market outlook, we expect the global games market to return to growth in 2024. Fortunately, we have not been affected by the downturn in the same way, as alternative markets continue to grow faster than the total market. Our strong financial position and fast growth, combined with a robust and exciting market position, allow us to fully leverage these new growth opportunities ahead.