19th May 2014 10:03
LONDON (Alliance News) - Centaur Media PLC Monday said group revenue for the first four months of 2014 was broadly unchanged from a year earlier, as it announced plans to sell its corporate finance and capital documents business, Perfect Information Ltd, to media firm Mergermarket Ltd in a deal worth GBP26 million in cash.
The events and media group said Perfect Information does not fit its market strategy and has a limited overlap with core customers, content and technology.
Centaur said the funds raised will be used to strengthen its balance sheet and provide additional capital for investment in other portfolios across the group.
Mergermarket is owned and controlled by funds advised by BC Partners Limited, a pan-European private equity firm which currently advises funds totalling over EUR12 billion.
In an interim management statement for the four months to April 30, Centaur said group revenue at the period-end stood at GBP24.4 million, the same as the first four month of 2013.
The company said paid-for content revenue grew 13% with the accelerating rate of growth underpinned by annualised contract values which came in 18% higher than a year ago.
However, it said advertising and events revenues were impacted by weakness across its financial portfolio, where revenues were 15% lower than in the same period last year.
Cenatur also warned that some external and legacy issues within its financial and human resources portfolio will adversely impact group probability in the first-half of 2014. The company said "these issues are specific and are being addressed."
In a separate note Monday, Centaur said it has conditionally agreed to an early settlement of the earn-out entitlement of the former shareholders of Econsultancy.com Ltd for GBP12.5 million in cash.
Econsultancy was acquired in July 2012 for initial cash consideration of GBP12 million with deferred consideration of up to GBP38 million due in 2016, based on earnings before interest, taxation, depreciation and amortisation performance for the year ending December 2015.
"The immediate investment into the Econsultancy settlement enables us to fully integrate our marketing portfolio, the largest part of the group, and by working together more effectively, we are able to further accelerate growth across this portfolio," Chief Executive Andria Vidler said in a statement.
Centaur Media shares were quoted down 7.5% at 65.00 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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