Sales rise at debt-laden Media Square
MARKETING group Media Square is starting to see the benefits of a restructuring programme but management admit the company is still shackled by too much debt.
The quoted business, which owns Macclesfield-based business-to-business marketing agency IAS, was founded in 2000 as a cash shell and took on debts to grow rapidly by acquisition. It refinanced with Lloyds Banking Group earlier in the year but net debt stands at £20.5m.
In the six months to the end of August sales rose 9% to £25.5m and the company nearly halved pre-tax losses to £1.5m. Earnings before interest, tax, depreciation and amortisiation jumped form a £700,000 loss last time to £1.2m.
Chief executive Peter Reid, said: “The group has made solid progress over the first six months of the year. We have seen a promising recovery in spend and the group now has a much more solid platform to build on as the market recovers.
“That said, we remain acutely aware of the need to drive further increases in the profitability of the group over time and to reduce the debt to a more appropriate level.”
Since 2007 Media Square has pared back its operation from around 40 agencies to 11. The board has not recommended an interim dividend.
