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Bonhill Group PLC on Monday put itself up for sale as it grapples with ‘market turbulence’ and weaker-than-expected digital revenue.
Shares were down 29% at 4.08 pence each on Monday morning in London.
The London-based media company, specialising in business information, events and data analytics, launched a strategic review, saying this may result in the sale of the group as a whole, or in part.
It has not yet received any takeover approach, Bonhill said, nor it is in talks with any potential acquirer.
Back in September, Bonhill warned ‘market turbulence’ meant customers held off on discretionary marketing spend.
‘The company announces that since then, trading conditions have continued to deteriorate resulting in weaker than expected digital revenues, in particular in the US, and, as a result, the board's confidence in the outlook for trading in Q4 2022 has weakened,’ it warned.
As a result, Bonhill said it expects to report 2022 revenue to be about £15.0 million, having previously guided £15.5 million.
It now expects a full-year loss before interest, tax, depreciation and amortisation of £350,000, compared to a previously expected profit of £300,000.
Bonhill reported breakeven Ebitda in 2021 on revenue of £16.4 million.
As a ‘precautionary measure’, Bonhill said it has entered into a standby loan facility with shareholder Rockwood Strategic PLC for £800,000. The facility carries a 2% interest rate and has a 5% arrangement fee and runs to May of next year. Bonhill doesn't expect to have to draw upon the facility until February at the earliest.
Bonhill also said it is launching a strategic review and a formal sale process. It said the review may lead to the sale of company as a whole or of trading its principal trading businesses. The sale process is being led by Shore Capital.
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