TMN Group profits climb 10%

by Paul McNally, Brand Republic 05-Sep-08, 14:20

LONDON - TMN Group, which spans the direct marketing, data and market research sectors, has reported a 10% boost in like-for-like operating profits in its end-of-year results, published today.

In what has proved a turbulent year for the group -- following an unsolicited takeover bid by rival Tangent Communications -- underlying profits in the 12 months to the end of April rose to £3.6m from £3.3m in the same period last year.

The company said: "The board and the executive team were inevitably distracted and their achievements overshadowed from February for five months by an unsolicited proposal which the Board viewed as unacceptable.

"However, the initial approach triggered interest from the private equity sector. The board decided to allow the group's two principal executives, Mark Smith and Craig Dixon, to co-operate with one private equity house to see if an acceptable MBO offer could be put together. That process fell victim to the severe contraction in the debt market.

"We all believe the group has a strong and exciting future and shareholders can be assured that the entire board and management are working closely together to realise the company's potential."

Overall TMN Group revenues were up 40% year on year from £16.1m to £22.5m -- but this was partly due to the group's two acquisitions in the year.

TMN bought Dutch digital marketing agency Tapps BV in January for £5.7m in a bid to boost its presence in mainland Europe.

The purchase came less than a month after the acquisition of Internet Business Group, the online ad group, for £9.8m.

Revenue growth on a like-for-like basis was in the region of 10%, the group said today.

TMN's key businesses include digital advertising agency EDR, online fieldwork service arm ID Factor and research analysis agency ICD Research.

The TMN Group chief executive, Mark Smith, said the company had started the new financial year well.

Smith said: "We now have an exposure in a number of European countries, as well as the US. Overall we now have a much more robust position in the online sector."