Australian exit pushes MKM to £7m loss
PROMOTIONAL goods and marketing company MKM Group posted a £7.4m loss today after pulling out of its recession-hit Australian business.
The Timperley, Greater Manchester-based firm, which is listed on AIM, said it is positive about its future prospects after an “eventful year”, which also saw it sell its loss-making London-based marketing business Promodus.
MKM is pinning its hopes to two products Airport Angel and StARS.
Launched 14 months ago Airport Angel membership allows consumers to access airport lounges across the world and to receive a number of other support services aimed at enhancing their travel experience.
The product includes a text service which enables users to receive information on their mobile phones about their plane arrival and departure times.
MKM said it was adding “thousands” of new members every month and had also been “well-received” by the market place and has seven corporate clients from the financial services sector. StARS is MKM’s web-based database programme .
Chief executive Brian Smillie said: “The group has had an eventful year that has defined the future directionand laid the foundations for its future growth.
“The global macro-economic conditions have adversely affected the Australian operations to such a degree that the group ceased trading the historical subsidiaries and associated activities were discontinued as of the balance sheet date.
“In contrast, the UK based business has enjoyed a successful launch of its Airport Angel product and a revitalisation of its partnership and tactical products.”
The results showed losses on continuing operations rising from £3,000 to £914,000. Revenue was down slightly at £3.7m against £3.8m. The bottom-line loss after tax was £8.3m.
