Sun shines on SPG
SPG which has a turnover of £17m and profit before tax of less than £0.5m has been acquired by Mike Danson's aggregation vehicle Progressive Media. SPG is a public company with shares valuing the business at just £7m. The Telegraph suggests that a deal may have been done at twice that. Wow! Merging with progressive will see duplicate costs coming out perhaps to the tune of £1m-£1.5m. If thats right then the underlying valuation is around 7 times earnings.
On of the largest shareholders is Kelvin Mckenzie. Allright matey.
This is a great escape from the public market which is still punishing all shares, with media stocks only ahead of bank stocks in traders minds of good places to put their money.
Danson, who founded and then sold Datamonitor sees opportunity in building a new b2b heap. Certainly there can be profit in it. Look at how well Metropolis have done.