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Media Square returned to profit at the operating level in the six months to August 2010 but disposal and closure losses and interest charges meant that it continues to make a pre-tax loss.
Revenues rose from £23.5m to £25.6m, while an operating loss of £1.25m before exceptionals was turned into a profit of £651,000. The overall loss was cut from £2.87m to £1.55m.
The main growth in revenues came from the advertising division, which accounts for nearly three-fifths of total revenues. Financial services spending is recovering and offsetting declines in public sector work. The design division lost a significant London Underground contract.
Net debt rose from £19.9m to £20.5m over the period. That was mainly down to a sharp reduction in trade creditors relating to cash payments already made for client projects. A new three-year bank facility has been agreed with Lloyds. This allows the company to pay down mezzanine debt early. Funds from property disposals go towards paying off the property loan.
Trading conditions remain uncertainty because of clients’ reluctance to spend money and reductions in public spending.
At 12.75p a share, Media Square is valued at £4.61m.
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