In Australia, marketing services group Photon – which owns MR firms The Leading Edge and Jigsaw Strategic Research – is attempting to raise AUS$114.6m through a share offering. The money is for debt reduction and to ensure the firm can fund future earn-outs.
As well as an AUS$27m institutional placement, shareholders will have the opportunity to subscribe for one new share for each two shares held at a price of AUS$1.50 per share, which is expected to raise a further AUS$87.9m.
There are four firms within Photon’s Strategic Intelligence division: they also include bellamyhaden and Naked.
For the year, revenue in the division increased from AUS$75.4m last year to AUS$102m in 2009, while net revenue increased to AUS$75.7m from AUS$53m. Full-year net profit fell 1% to AUS$21.4m.
The Photon group comprises more than 50 specialist businesses providing expertise across marketing and communications services. During the period, like-for-like net revenues for the group grew by 7% to AUS$440.6m, although growth was 5.8% on a constant currency basis. Underlying net profit was up 30% to AUS$28.2m.
Executive chairman Tim Hughes said the results had been affected by redundancy costs worthAUS$3.7m, an AUS$4.2m non-cash impairment charge associated with Photon's investment in Internet domains broker Dark Blue Sea and a tough June quarter.
Yesterday, shares in the group were unchanged at AUS$2.36.
Web sites: www.photongroup.com