Vitesse Media plc, the specialist multi media business (online, events and print) focusing on the entrepreneurial sectors and its investors, today announced the acquisition of What Investment magazine, its associated web site www.whatinvestment.co.uk, and a quarterly supplement What Investment Trust along with certain other assets from Charterhouse Communications plc for a net cash payment of £500,000.
Five employees will be transferred to Vitesse Media with the assets. What Investment is a monthly newsstand magazine with an ABC audited circulation of over 21,000, of which around 17,000 are subscribers. The title and its web site offer synergies and a marketing platform for one of our leading brands Growth Company Investor and an opportunity to develop the online presence and new events.
Unaudited figures which have been taken from the results for the year ending 31 May 2006, and which are attributable to these assets show revenues of £895,000 and gross profit of £106,000. The net cash payment of £500,000 is made up of a cash consideration of £626,000 with a refund of £126,000 of prepaid subscriptions by the vendor.
The payment is being funded by a placing of 2,787,500 ordinary shares in the company at 20p to raise £557,500 before expenses (the “Placing”), plus an increase in bank facilities.
Application has been made for admission of the new ordinary shares to trading on AIM and dealings in the new ordinary shares issued under the Placing are expected to commence at 8.00am on 6 February 2007. The Acquisition and the Placing are both subject to the placing shares being admitted to trading on AIM. As part of the Placing Andrew Brode, a non-executive director in the Company, will subscribe for 500,000 shares at 20 pence per share. Following this Andrew will have a shareholding of 550,000 ordinary shares representing 2.63% of the issued share capital of the Company.
Vitesse Media's trading continues in line with the statement accompanying the interim results in September, showing a reduction in losses. For the full year to 31 January, revenues are expected to be between £3.1 and £3.2 million and losses are expected to reduce to around £350,000 (before one-off costs due to office move).
Commenting on the acquisition, Sara Williams, Chairman of Vitesse Media plc, said: “We are delighted to add What Investment and www.WhatInvestment.co.uk to our stable of titles. The purchase will increase our marketing reach for other titles and events, as well as providing us with a wonderful opportunity to develop new events.”