Media Square to Sell Display Business to Writtle
Net proceeds from the sale will be applied to reduce the company's debt position. arken designs and manufactures point of purchase display materials and graphic display units from its base in Newmarket.
In the financial year to February 28, 2010, arken recorded audited revenues of Â£3.6m and an operating profit of Â£265,000. It had net tangible assets of Â£881,000 and goodwill of Â£500,000. In the six month unaudited period to August 2010 the company generated revenues of Â£1.4m and an operating loss of Â£155,000.
In addition, as part of the transaction, Writtle Holdings has been granted the option to acquire the freehold premises occupied by arken and owned by Media Square for the sum of Â£3.25m in cash. This option expires on December 31, 2011 and is exercisable at the sole discretion of Writtle Holdings.
The company is engaged in the advertising, marketing and design services. The company operates through three segments include advertising, marketing and design.
Roger Parry, chairman of Media Square, said: â€œarken has a long track record as a leader in the point of purchase industry, but it is a very different business from the rest of the Media Square agency portfolio. Writtle should be an excellent home for arken, as they already have several businesses in the same industry sector and have a long track record of success with this type of business.â€
Is this a sensible move from Media Square?
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