The AIM-listed Progressive Digital Media Group (formerly TMN Group) that was subjected to a reverse takeover last June (see TMN’s re-emergence on AIM as Progressive Digital Media Group lacks clarity), has taken the opportunity to write down a number of assets ahead of the deal date and will thereby provide the enlarged group with a better starting position for future financial reporting. In a preliminary announcement of the former TMN Group’s results for the year to 30 April 2009 the company disclosed that it had made provisions and other exceptional charges totalling £13 million. The company has also accelerated the timing of charges for database acquisition costs. These various charges contributed to a loss of £16.4 million for the year.
The components of the £13 million charge included impairment provisions of £9.5 million in respect of intangible assets and investments. In addition an extra £2 million provision was made for bad debts. Provisions were also made for reorganisation costs of £0.7 million and onerous lease-related items of £0.8 million.
As to how the component members of the merged group are performing, investors will have to await the publication of the half-year results in January next year. Even then it may be difficult to discern which elements of the group are making a healthy profit and which are not.
The group is now under the dominant control of executive chairman Mike Danson who owns 85.5% of the shares.
© Fintellect Ltd
BOB WILLOTT
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