Zinc Media Group is making a strategic move by selling its non-core division, Zinc Communicate Publishing, for £100,000.
- Zinc Communicate, a telesales and contract publishing business, has been part of the group since 1995 but never became a core focus.
- The division generated £2.2 million but reported a loss, prompting its sale to Specialist Business Media Ltd.
- The sale allows Zinc Media to concentrate on its key areas of television and brand content production.
- Completion of the sale is anticipated by the end of October, marking a new chapter for both parties involved.
Zinc Media Group is strategically divesting its subsidiary, Zinc Communicate Publishing, by selling it to Specialist Business Media Ltd for £100,000. This action is aimed at enabling Zinc Media to focus on its core operations, particularly in television and brand content production. The unit, which has been a part of Zinc since 1995 under various names, was not aligned with Zinc’s primary business objectives and has been deemed non-core.
Zinc Communicate Publishing, known for its telesales and contract publishing activities, generated a revenue of £2.2 million in the fiscal year 2023 but also reported a loss, raising questions about its sustainability within the media group. The decision to sell was driven by the desire to streamline operations and reallocate resources more effectively within the company.
The purchaser, Specialist Business Media Ltd, is a subsidiary of The Datateam Group, a company renowned for operating digital and print titles in diverse sectors such as construction, healthcare, and electronics. This acquisition is expected to enhance their publishing capacities whilst aligning with their existing portfolio, providing a broadened scope for business development.
As of 31 December 2023, Zinc Communicate Publishing had net assets of £0.8 million, including a high volume of trade debtor balances. The sale is predicted to relieve Zinc Media from the management intensity associated with this high-maintenance division. The Board of Zinc Media intends to channel the proceeds into working capital, potentially accelerating growth in more profitable areas.
The process leading to this transaction was highly competitive, managed by Trillium Partners on behalf of Zinc Media. Completion of the deal is pending customary closing conditions, with expectations set for the end of October. This divestiture is a calculated step towards enhanced operational focus and profitability for Zinc Media Group, promising continued growth in its key segments.
Zinc Media’s sale of Zinc Communicate Publishing signifies a strategic realignment towards its core business areas, ensuring future growth and stability.