Hasgrove to sell PR firm Amaze for £15.3m

The deal, subject to shareholder approval, includes a £1.8m repayment of intercompany debt. A further payment of up to £9.7m could be payable if Amaze achieves certain profit targets in the current financial year, taking the total up to as much as £25m.

Amaze had a turnover of £17.3m and operating profits (before management recharges) of £1.7m for the year to 31 December 2012. The net assets being disposed amount to £6.7m.

Paul Sanders, Hasgrove’s chief executive, said: “We have worked with the management team of Amaze to grow and develop the business. It is now of a scale which needs further investment to take it to the next level. Therefore having received a good offer, we have decided now is the right time to realise our investment in Amaze.”

Part of the net proceeds of disposal will be invested in the group’s remaining businesses for expansion and working capital requirements. Up to £1.9m will be used to fully repay the group’s bank loans. The company said it is considering the options in relation to the remaining proceeds, which will include a return of cash to shareholders.

Group finance director Stephen Collins will step down from the board and his role as company secretary following the completion of the transaction and will leave Hasgrove but will remain with Amaze as finance director.



 

Following the sale of Amaze, Hasgrove will own three trading subsidiaries; Interact, The Chase and Landmarks. 

The company said in its stock market announcement: “The board believes that these businesses address key market segments and offer growth potential. A proportion of the net disposal proceeds will be invested to accelerate the growth of Interact, particularly outside of the UK.”

In March 2012 it sold the London e-commerce specialist Underwired Amaze, which it acquired in 2009, to management and prior to that, in July 2011, Interel, the public affairs and strategic communications division, was sold to its management team for £8.45m.

In January’s trading update for the year to December 31, Amaze said turnover should rise from £16.5m to £19.1m, and pre-tax profit should come in at £1.4m. In 2011 the Manchester company reported a pre-tax loss of £3m.