Vision Media failed to profit from shopping screens
VISION Media was losing thousands of pounds a week in its final months, according to a new report.
The AIM-listed business, which specialised in operating advertising screens in shopping centres, collapsed in July after racking up debts of nearly £4m.
A report by administrators handling the company shows that it was haemorrhaging money – losing £96,000 in January and £94,000 in February.
Losses dipped to £71,000 and £51,000 in March and April but had risen again to £86,000 in June.
The Cheadle-based business had been grappling with substantial losses for years and had not turned a profit since being set up in 2003. It recorded a loss of £5.5m in 2007 and £7.1m in the 12 months to December 31, 2008 on sales of £1.4m.
Joint administrators from the insolvency firm Tenon said the firm was struggling to meet debt repayments by early 2009 and raise enough cash to renew the hardware it had in shopping centres.
The credit crunch derailed the business, said the administrators, because there was less demand for advertising and it became harder for the firm to raise finance.
Its main creditor, Trafalgar Capital, was owed £2.75m and it appointed Tenon in July when an attempt to secure extra funds stalled.
There were 15 offers for the group’s assets which were considered via a blind auction. But the winner was VMG Global – not owned by Vision Media but set up by the group to develop its overseas interests.
The directors of VMG Global are Vision Media’s chairman Mike Cottman and its chief executive Dominic Brookman who paid £25,000 in cash for the assets plus shares in VMG Global worth £775,000 and a cut of its future profits.
