Media Square, the marketing communications group, is restructuring after profit losses in its full-year results to February 29. The group says the “radical restructure” is nearly complete and resulted in costs of about £5m.
Media Square reported initial losses for the first half of 2007 in November last year and it now estimates its net debt at about £21m.
The group’s executive chairman Roger Parry (pictured) says: “Following the acquisitions, Media Square was being held together with bits of string and Blu-Tack. We have now put in place a more robust structure.”
At the start of the last trading year in March 2007, Media Square had more than 40 individual operating units. In November, a number of its business units were merged, sold or closed, leaving 15 principle units organised into three divisions. The group now plans to sell a further two units – contract publisher Beetroot and print buyer Symbian – for £500,000.
Parry adds: “It is a great relief that this last trading year has come to an end. The company has gone through a traumatic period of painful self-evaluation and costly restructuring.”