REG - Zinc Media Group PLC - Sale of Non-Core Business Unit

Zinc MediaAnnouncement

21/10/2024 07:00

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RNS Number : 8583I  Zinc Media Group PLC  21 October 2024

21 October 2024

Zinc Media Group Plc

("Zinc" or the "Group")

Sale of Non-Core Business Unit

 

Zinc Media Group plc (AIM: ZIN), the award-winning television, brand and audio
production group, is pleased to announce that it has entered into an agreement
to sell its remaining legacy tele-sales contract publishing business,
currently trading as Zinc Communicate Publishing for a cash consideration of
£100,000.

 

Zinc Communicate Publishing is a non-core business unit based in Macclesfield
and the sale enables the Group to focus on growing its core operations within
television and brand content production.

 

In FY23, Zinc Communicate Publishing generated £2.2m in revenue, a loss
before tax of £0.05m, and is loss-making to date in FY24. It is a small
non-core business within the Group which occupies significant management time
and resources.

 

Zinc Communicate Publishing began in 1995 and became known as McMillan Scott.
It was later acquired by Ten Alps in 2006, trading as Ten Alps Publishing
until becoming Zinc Communicate Publishing in 2021. The business is a
tele-sales and contract publishing company, selling advertising and commercial
inventory as well as producing publications within the construction and
freight industries. It produces building control guides for local authorities
in England and has recently renewed a long-term partnership contract.

 

The Company has exchanged contracts with Specialist Business Media Ltd, a
wholly owned subsidiary of The Datateam Group, a leading publishing and events
company based in Maidstone which owns and operates digital and print titles
across sectors such as construction, healthcare, electronics, and
manufacturing, and specialises in producing digital and print media, and
providing targeted marketing solutions across a range of B2B sectors. As a
result, the business will not continue to trade under Zinc Communicate
Publishing going forward.

 

The Board intends to use any net proceeds from the transaction for working
capital purposes.

 

Zinc Communicate Publishing had net assets of £0.8m as at 31 December 2023.
This includes significant trade debtor balances made up of a high volume of
small debts which fall due over the next three years and does not reflect the
costs that would be required to realise these balances.

 

The sale is subject to customary closing conditions, with completion expected
by the end of October. The sale follows an extensive competitive process led
by Trillium Partners on behalf of Zinc Media Group.

 

Mark Browning, Chief Executive Officer, Zinc Media Group, says:

'Zinc Media Group has doubled in size in the last few years, with rapid
expansion in television and brand content production. The disposal of this
legacy tele-sales business gives the group renewed capacity to pursue its
strategic focus on the profitable growth in television and film-based
production.

 

The publishing business will thrive within a wider specialist publishing
group. I'd like to extend a personal thanks to the management team in
Macclesfield who've been wonderful colleagues over many years and wish them
well in their new home'.

 

For further information, please contact:

 

Zinc Media Group plc
 
+44 (0) 20 7878 2311

Mark Browning, CEO / Will Sawyer, CFO

www.zincmedia.com (http://www.zincmedia.com)

 

Singer Capital Markets (Nominated Advisor and Broker)
 +44 (0) 20 7496 3000

James Moat / Sam Butcher

 

MHP

Oliver Hughes / Eleni Menikou / Ollie Hoare
                        +44 (0) 7817 458804

 

About Zinc Media Group

 

Zinc Media Group plc is a premium television and content creation group.

 

The award-winning and critically acclaimed television labels comprise Brook
Lapping, Red Sauce, Supercollider, Tern Television, Rex and Atomic, along with
Bumblebee Post Production, and produce programmes across a wide range of
factual genres for UK and international broadcasters.

 

The Edge Picture Company produces film content for brands and corporates in
the UK, Qatar and other international markets.

 

For further information on Zinc Media please visit www.zincmedia.com
(http://www.zincmedia.com)

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