MKM to sell its UK business

MKM to sell its UK business
QUOTED promotional goods and marketing company MKM Group will de-list after agreeing to sell its UK operations for £4.6m.

QUOTED promotional goods and marketing company MKM Group plans to de-list after agreeing to sell its UK operations for £4.6m.

Manchester-based MKM has struck a deal with York-based CPP Holdings and will now seek shareholder approval for the move.

The deal covers the bulk of MKM’s business – Leapfrog Group, which designs and develops loyalty programmes for blue chip clients such as its Airport Angel scheme, and in-house travel agent Concepts for Travel. The two ventures employ 45 people.

If it goes through MKM will be left with its remaining trading activities in Australia, which remain under review, and shareholdings in the marketing firms Promodus and Stripe Marketing.

The group said the deal would allow its interests to, “be developed within a larger group which has the necessary resources and global client distribution to fully support and take advantage of its growth potential”.

Chief executive Brian Smillie said: “We are pleased to announce this transaction which we believe can deliver good value for shareholders against a backdrop of where our share price stands today and offers shareholders further potential upside based on future business prospects.”

In the year to March 31 MKM’s UK business recorded turnover of £3.1m and a loss after tax of £314,000, which included a £219,000 write-off relating to an inter-company debt in Australia.

CPP is an international marketing services business offering customer management services to business partners. The company aims to increase customer revenue and loyalty.

It employs more than 1,000 staff in York and 2,000 worldwide and provides support and protection for people who lose their credit and debit cards, mobile phone and identities.

 

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