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Media Square
- BY: Andrew Hore |
- POSTED: 12/03/2008 |
Marketing services group Media Square is selling its Coutts point of purchase business to a venture capital backed group.
The acquirer is bezier acquisitions, which is a UK in-store marketing agency backed by MidOcean Partners. It is paying £7.25m for the business subject to adjustment for the figures in the completion accounts.
Coutts lost £800,000 on turnover of £19.2m in the year to February 2007. This business was a profitable one prior to being acquired by Media Square. It had net assets of £14.7m at the same date so the sale price is well below that figure.
Media Square expects to make a small underlying operating loss in the year to February 2008. On top of that, restructuring costs were £5m and £16m was written off goodwill. Net debt was around £7m so the Coutts sale will put a dent in that.
According to executive chairman Roger Parry, after the company’s acquisition spree a couple of years ago Media Square “was being held together by bits of string and Blu Tack”. A new structure has been put in place and he admits a number of the businesses have underperformed.
The shares rose 0.125p to 7p.
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