21
October 2024
Zinc Media Group
Plc
("Zinc"
or the "Group")
Sale of Non-Core Business
Unit
Zinc Media Group plc (AIM: ZIN), the
award-winning television, brand and audio production group, is
pleased to announce that it has entered into an agreement to sell
its remaining legacy tele-sales contract publishing business,
currently trading as Zinc Communicate Publishing for a cash
consideration of £100,000.
Zinc Communicate Publishing is a
non-core business unit based in Macclesfield and the sale enables
the Group to focus on growing its core operations within television
and brand content production.
In FY23, Zinc Communicate Publishing
generated £2.2m in revenue, a loss before tax of £0.05m, and is
loss-making to date in FY24. It is a small non-core business within
the Group which occupies significant management time and
resources.
Zinc Communicate Publishing began in
1995 and became known as McMillan Scott. It was later acquired by
Ten Alps in 2006, trading as Ten Alps Publishing until becoming
Zinc Communicate Publishing in 2021. The business is a tele-sales
and contract publishing company, selling advertising and commercial
inventory as well as producing publications within the construction
and freight industries. It produces building control guides for
local authorities in England and has recently renewed a long-term
partnership contract.
The Company has exchanged contracts
with Specialist Business Media Ltd, a wholly owned subsidiary of
The Datateam Group, a leading publishing and events company based
in Maidstone which owns and operates digital and print titles
across sectors such as construction, healthcare, electronics, and
manufacturing, and specialises in producing digital and print
media, and providing targeted marketing solutions across a range of
B2B sectors. As a result, the business will not continue to trade
under Zinc Communicate Publishing going forward.
The Board intends to use any net
proceeds from the transaction for working capital
purposes.
Zinc Communicate Publishing had net
assets of £0.8m as at 31 December 2023. This includes significant
trade debtor balances made up of a high volume of small debts which
fall due over the next three years and does not reflect the costs
that would be required to realise these balances.
The sale is subject to customary
closing conditions, with completion expected by the end of October.
The sale follows an extensive competitive
process led by Trillium Partners on behalf of Zinc Media
Group.
Mark Browning, Chief Executive Officer, Zinc Media
Group, says:
'Zinc Media Group has doubled in
size in the last few years, with rapid expansion in television and
brand content production. The disposal of this legacy tele-sales
business gives the group renewed capacity to pursue its strategic
focus on the profitable growth in television and film-based
production.
The publishing business will thrive
within a wider specialist publishing group. I'd like to extend a
personal thanks to the management team in Macclesfield who've been
wonderful colleagues over many years and wish them well in their
new home'.
For further information, please
contact:
Zinc Media Group plc
+44 (0) 20 7878
2311
Mark Browning, CEO / Will Sawyer,
CFO
www.zincmedia.com
Singer Capital Markets (Nominated Advisor and Broker)
+44 (0) 20
7496 3000
James Moat / Sam Butcher
MHP
Oliver Hughes / Eleni Menikou /
Ollie Hoare
+44 (0) 7817 458804
About Zinc Media Group
Zinc Media Group plc is a premium
television and content creation group.
The award-winning and critically
acclaimed television labels comprise Brook Lapping, Red Sauce,
Supercollider, Tern Television, Rex and Atomic, along with
Bumblebee Post Production, and produce programmes across a wide
range of factual genres for UK and international
broadcasters.
The Edge Picture Company produces
film content for brands and corporates in the UK, Qatar and other
international markets.
For further information on Zinc
Media please visit www.zincmedia.com