News blog
Vitesse Media
- BY: Andrew Hore |
- POSTED: 13/05/2009 |
Financial information publisher Vitesse Media is raising cash by selling Smallbusiness.co.uk to its chief executive’s family interests.
Tudor Myles Ventures, which is owned by Sara Williams and her husband and fellow Vitesse director Peter Williams, is paying £170,000 for the website. Vitesse has the right to buy back the website within the next three years for the same amount. This is a way of providing Vitesse with the working capital it needs. Vitesse has lost money in the most recent two months.
Vitesse will continue to operate the Smallbusiness.co.uk website and will retain any profits but it has to pay an annual fee of £17,000 to Tudor Myles. The website made a profit of £54,000 on revenues of £452,000 in the year to January 2009.
If there is a fundraising by Vitesse that is deemed to be sufficiently large then the website will be bought back through the issue of shares at the same price as that fundraising.
Cost savings are also being made by Vitesse. M&A magazine is being closed although there will still be a 16 page supplement in Business XL magazine. The website, events and research documents will continue. Six jobs will be lost.
This will achieve annualised savings in the Vitesse business to £477,000. Vitesse had already cut around £1m from costs since June 2008.
A shareholder meeting will be held on 29 May to vote on the sale.
At 14.5p a share, Vitesse, which recently changed its nominated adviser and broker to Seymour Pierce, is valued at £3.71m.
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