12 Sep 2012 07:00
12 September 2012
UBC Media Group plc
Sale of Lynx Content business
UBC Media Group plc ("UBC" or the "Company") announces that it has reached agreement to sell Lynx Content, its business that creates advertiser funded content for the radio and online markets, to Steve Leavesley, the former managing director of Lynx Content ("the Sale") with immediate effect.
As discussed in the Company's final results for the year ended 31 March 2012, UBC's strategic review concluded that the business of content production is a low growth one and the Sale allows UBC to concentrate on its interactive and software business, which the directors believe has better growth prospects.
The consideration being paid to UBC for the Sale is £300,000 to be satisfied in cash and payable over a 2 year period. Lynx Content's turnover was £1 million and gross profits before consideration of overheads were £121,000 for the year ended 31 March 2012. Its gross assets as at 31 July 2012 were valued at £265,000.
The proceeds of the Sale will be used by UBC to invest in its interactive operations where growth is expected to come both organically and from acquisition. Lynx Content will be relocated out of UBC's offices and this will give the Company the opportunity to reduce its premises costs immediately.
Commenting on the disposal, Chief Executive Simon Cole said:
"Ten weeks ago, we outlined that our strategy was to concentrate our efforts on the higher growth and more internationally focussed interactive elements of our business. Our strong balance sheet means that we are under no pressure to look for disposals; however, where we see opportunity to realise cash and more immediate shareholder value from the lower growth elements of our business then we will do so. This deal allows us to reduce overheads and generate cash. Steve will be able to operate the business on a reduced scale; we wish him all the best for the future and thank him and the Lynx team for their work whilst part of UBC."
Enquiries:
UBC Media Group | 020 7453 1600 |
Simon Cole, Chief Executive |
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Chris Dent, Finance Director |
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finnCap | 020 7220 0500 |
Charlotte Stranner/Rose Herbert - Corporate Finance |
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Victoria Bates - Corporate Broking |
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Notes to Editors
About UBC Media Group
UBC is quoted on the London Stock Exchange's AIM market. UBC is a leading provider of digital content, software and mobile applications. The Group is the largest independent producer of radio programming for the BBC and a provider of entertainment programming to commercial radio stations throughout the UK. Its software division, Unique Interactive, is a global supplier of digital radio text and data services.
www.ubcmedia.com