Shares in AIM-listed podcast provider Audioboom (LON:BOOM) sank 14% despite the firm promising record H1 results. Instead, investors were dismayed the firm had ended its strategic review despite receiving three indicative offers for the business at a premium.
‘Read the room’
For the six months to the end of June, Audioboom said it expects to report record results. Revenue is seen rising nearly 30% to $45 million while adjusted EBITDA is seen rising at least 66% to a minimum of $3 million.
The firm said the positive trading it experienced in Q1 and which it reported on in April had continued into Q2. It expects to provide a more comprehensive update with its H1 results on or around 16 July 2026.
However, the positive news was offset by the revelation the firm was winding up its strategic review. As a result, it is no longer in an Offer Period as defined by the UK Takeover Code.
It took this decision despite receiving three indicative offers for the business at a premium to 540p. That was the share price on 2 October last year, the last day of trading before the company entered the Offer Period.
The firm said the offers undervalued the company based on its accelerating performance in Q1. Therefore it has terminated discussions with all three interested parties.
This is a good example of a company failing to ‘read the room’ and judge the market’s mood. Had it done so, the shares might have been up 14% rather than down 14%.
We assume the board consulted with its major shareholders, Nick Candy, Dowgate, Mark Horrocks and Michael Tobin, regarding the bids. These investors own nearly a third of the shares, but they clearly don’t speak for everyone.
By rejecting the bids and ending talks, the firm will be judged hereon in purely on its results. It assumed telling the market H1 revenue and profits were at record levels would impress, but again it misread sentiment.
