Restructuring leaves Thomson Intermedia in 'good place'

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By Lee Wild

Date: Wednesday 23 Jul 2008

LONDON (ShareCast) - A major clean up and restructuring effort at Thomson Intermedia resulted in a big non-cash write-down, but has left the media intelligence firm in good shape, said bosses Wednesday.

Chief executive Michael Greenlees told ShareCast the year-long restructuring programme had been a real “root and branch” operation, but has led to greater financial transparency and put the group in a "good place".

Greenlees took the helm last October, bringing a “fresh perspective” to the business after the group’s founders, Steve and Sarah Jane Thomson, stepped down.

A one-off non cash write-down of £1.5m meant the reported pre-tax loss for the year ended 30 April grew to £1.4m from £0.2m 12 months ago.

Bosses decided to clean up the balance sheet, removing goodwill linked to two failed initiatives embarked upon before Greenlees arrived. Underlying operating profit was £2m, down 10% on last year, but this still showed underlying growth of 27% before one-offs.

Total revenue for the period jumped 18% to £17.2m, with the consultancy services business also up 18% to £11.3m, or two-thirds of revenue. Net debt fell to £2.1m from £3m.

The company, which advises clients on how best to maximise return on marketing and media spend, said it is seeing more interest in its products and services than it’s had for some time.

“All advertisers in 2008 will be looking to audit their media spend and with a newly restructured set of monitoring and consultancy services, Thomson is uniquely positioned to help,” said broker Landesbanki.

Meanwhile, Edison reckons the firm is capable of growing at about 15% a year in the medium term as it scales its business in the UK and overseas.

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