11th Jul 2019 11:36
(Alliance News) - Mporium Group PLC on Thursday said it agreed to sell its technology-led digital agency business, Fast Web Media, to International Agency Group Ltd for GBP7,500.
The marketing technology company said the transaction follows comprehensive restructuring of operations and business around the performance-led MporiumX division, whilst also eliminating ongoing operational losses.
In June, the company announced a major restructuring of the business to refocus on the performance-led MporiumX division. The restructuring was announced after the company failed to achieve sufficient revenue from its Agency division, making the business significantly unprofitable.
Fast Web Media business has generated "significant" losses since the beginning of 2018, resulting in revenue of GBP355,000 and loss of GBP952,400 for the year. A strategic review of Fast Web Media business begun in June.
"Having reviewed our options carefully, we are confident that this is the best course of action for both Mporium and Fast Web Media, one which will allow Mporium to focus on the MporiumX business, with the goal of delivering the best possible outcome for our shareholders," said Chief Executive Nelius De Groot.
Mporium shares were trading 7.0% lower on Thursday in London at 0.85 pence each.
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