MKM sells off Promodus
SALES promotions group MKM has sold a majority stake in its loss-making London marketing business Promodus.
Manchester-based MKM has agreed the deal with the London company Stripe Marketing. Under the terms of the deal Stripe will take control of 90% of the business.
In return MKM will receive 8% of Stripe’s share capital and provide services worth £32,000.
In a stock market statement MKM described Stripe as a recently established private company which has not yet filed any audited accounts.
It said the deal will complete two business days after the transfer to Stripe of 47.5% of another company which is expected to go through within two weeks.
The last audited accounts of Promodus for the year to December 31, 2007 show the business recorded pre-tax profits of £125,902. However unaudited management accounts recorded a loss before tax in the fifteen months March 31, 2009 of £122,262. The unaudited net asset value of Promodus on March 31 was £5,074.
MKM said it planned to retain its shareholdings in Promodus and Stripe as medium-term investments. It added that the deal will allow management to focus on its remaining UK businesses trading as The Leapfrog Group and Airport Angel.
