21 Aug 2007 14:25
MOTIVE TELEVISION PLC ACQUISITION OF SCARLET TELEVISION
Motive Television plc, ("Motive"), the AIM-listed television group, has acquired a 75% interest in Manchester-based television production company, Scarlet Television Ltd, ("Scarlet"), from the Administrator of parent company Medal Entertainment & Media PLC for a total consideration of ‚£50,000 Medal Entertainment & Media PLC announced on 24 July that it had requested to be put into administration. As an integral part of the transaction the Administrator agreed to waiver of all debts due from Scarlet to Medal Entertainment & Media plc.
The remaining 25% of Scarlet's shares are owned by its founder and managing director, Paula Trafford. Subsequent to the transaction, Motive has agreed to transfer ownership of some of its shares in Scarlet to Paula Trafford. As a result, Paula Trafford will own 49.4% of Scarlet's issued share capital and Motive 50.6%. Ms. Trafford has signed a three-year service agreement with Scarlet and will join the board of Motive Television (Holdings) Ltd.
Motive has agreed to invest funding of ‚£250,000 in the development of Scarlet.
In the year to March 2007 Scarlet recorded an unaudited loss of ‚£236,000 on sales of ‚£1.37 million (2006: loss of ‚£ 65,000; 2005: loss of ‚£37,000).
Scarlet was established in November 2004 and since then has built up a business serving most of the main television channels. It produces factual entertainment and entertainment programmes for the BBC, ITV, Channel 5, Sky One and digital channels such as Discovery.
Scarlet's upcoming and recent programmes include "Diana's Last Summer" for ITV1, (to be shown on Wednesday 22nd August at 9pm); "What's Eating Victoria Beckham?"; and "Spice Girls: 10 Years of Girl Power".
The acquisition means that there will two Motive productions being shown on mainstream TV on Wednesday 22 August, Diana's Last Summer (ITV1) and Bafta nominated The Best of Little Miss Jocelyn (BBC2).
Paula Trafford has a considerable slate of credits in factual programmes. She has won a significant number of network commissions since the launch of Scarlet Television in November 2004. Previously, Paula won a number of industry awards (both as producer and editor) and was part of the creative team behind the ground breaking Big Breakfast and helped launch Granada Sky Broadcasting's lifestyle channels.
Mick Pilsworth, chairman of Motive, said: "Paula brings a wealth of experience and terrific creative talent to our group. And because Scarlet is based in Manchester it provides us with a regional base, and qualifies for regional quota. This means that Scarlet can benefit from rules under which UK broadcasters have agreed to purchase a proportion of programmes from production companies outside London."
"Scarlet Television is now well-established and, although it has reported start-up losses, we expect its figures to improve as it reaps the benefit of earlier investment in development of new programmes."
Paula Trafford said: I am delighted to join such a progressive and forward thinking group as Motive Television. This is a great opportunity for Scarlet and for me and I look forward to what I know will be an exciting collaboration."
The acquisition of Scarlet means that Motive now owns four television production companies: Motive Television (its Dublin-based Irish arm); comedy specialist Brown Eyed Boy and Luminous Productions, an entertainment company.
The acquisition of Scarlet accords with Motive's strategy of taking stakes in smaller TV production companies with growth prospects.
For further information, please contact:
MotiveMick Pilsworth 07968 008836Brunswick 0207 404 5959James Hogan / Craig Breheny
City Financial Associates Limited 020 7090 7800
James Caithie
Note to Editors
Motive Television (www.motivetelevision.co.uk) is a leading media investment company, specialising in television rights owners. Based in London, it is listed on the AIM and is led by television industry experts Mick Pilsworth and Ian Buckley.
In May 2005 Motive acquired 100% of Setanta Television Ltd.
In March 2006 Motive acquired 49.9% of comedy production company Brown Eyed Boy Ltd.
In June 2007 Motive purchased a 50% interest in Luminous Productions Ltd, an entertainment production company.
Motive is actively seeking further acquisitions in the television production sector.
MOTIVE TELEVISION PLC