VMG Losses Continue
Adrian J Cotterill, Editor-in-Chief
The new management team (we say ‘new’ in an 18 month old sense) have surely had enough time now to turn around Vision Media Group (Intl) PLC from the disaster it once was when it was ScreenFX OR is it simply that the UK’s Alternative Investment Market (AIM) is not a place for any fledgling DS / DOOH business to be? (surely Neo Advertising must be thinking the same, especially the way that they are continuously pumping money in terms of loans into AIM listed Avanti Screenmedia).
ScreenFX acquired Theme Park Media in December 2007, when at the same time, the Theme Park Media management team started to run the combined business, before eventually the business was renamed Vision Media Group (International) Plc
Yesterday was a bad day for listed AIM businesses in our sector (yes, despite all the de-listings there are companies that represent our industry sector); MediaZest reported its final results for the year to 31 December 2008 and Avanti announced (again) that it had secured further short term funding from Neo Media Group SA.
VMG’s losses were described as ‘stable’ at GBP £4.6 million – these are LOSSES remember, though you could try and look on the bright side and say that losses in 2007 were ALSO GBP 4.6 million we suppose?
Losses after tax increased in 2008 to GBP 6.2 million (in 2007 they were GBP 5.0 million)
Revenue in 2008 was a paltry GBP 1.4 million (in 2007 it was GBP 1.6 million).
Perhaps you have to ask what exactly is the point?
July 1st, 2009 at 13:43 @613
This seems to be an alarming trend in the fledgling DOOH sector. And the point you make needs to be expanded further. I’m sure the management aren’t a bunch of numpties unable to ‘make a business model work’. So the question then remains as to what the inherent problems are – both in this case and in general:
1) Wrong business model
2) Short term investment in infrastructure and technology and expecting long term retuurns
3) Poor access to media buyers.
By the looks of the paltry indeed figure of £1.4m revenue, it would point to a poor access to media buyers etc. Which highlights the importance of educating the advertising and brand management disciplines of DOOH features and benefits (such an old-fashioned yet relevant term!)
It’s no point having the biggest gun if you don’t have any ammo – yes, the latest technology and innovation is super but if you’re not tapped into the source of money any company will be red-lining for a long time.