(Alliance News) - Mission Group PLC on Friday said it sold an 80% stake in Pathfindr to Bandwidth Investments Ltd as part of its wider debt-reduction strategy.
The Devon, England-based owner of a group of digital marketing and communications agencies will receive an initial cash consideration of GBP1 million from Bandwidth in exchange for the interest.
The sale will also involve a future earnings-based earn-out over the next three years.
The company said that funds from the disposal of the asset monitoring business will be used to improve the group's net debt position.
In December, Mission Group estimated its net debt for the 2023 full year at GBP24.0 million, and announced its "value restoration plan" involving cost-saving initiatives and business disposals.
For the financial year ended December 31, Pathfindr forecast a pretax loss of GBP1.3 million, revenue of GBP0.4 million, and operating pretax loss after exceptional costs of GBP3.0 million. Pathfindr's net liabilities as of December 2022 were GBP2.9 million.
Further updates on the group's debt-reduction plan will be provided alongside its full year trading statement in January.
Shares in Mission Group were up 2.7% at 23.20 pence each in London on Friday morning.
By Hugh Cameron, Alliance News reporter
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The Mission Group (TMG)