(Sharecast News) - Digital marketing and communication agency firm Mission Group announced on Friday that it had completed the sale of its 80% stake in Pathfinder, a non-core business entity, as part of its strategic objectives.
The AIM-traded firm said the sale, announced on 20 December, involved transferring ownership to Bandwidth Investments for an initial cash payment of £1m.
Additionally, an earn-out component based on Pathfindr's future earnings over the next three years would be disbursed in cash.
The board said the primary purpose of the initial £1m consideration was to alleviate Mission's net debt position.
Pathfindr faced a challenging financial year in 2023, projecting losses before tax of about £1.3m.
In the financial year ended 31 December 2022, Pathfindr reported revenues of £0.4m, an operating loss before tax excluding exceptional costs of £0.1m, and an operating loss before tax including exceptional costs of £3m.
The company had net liabilities of £2.9m at the end of 2022.
At 1040 GMT, shares in the Mission Group were up 4.32% at 23.47p.
Reporting by Josh White for Sharecast.com.
The Mission Group (TMG)