Content Management In the Alternative Market
Mediasurface, one of the first and best established content management brands in the UK, finally floated this year. We asked them a few questions. Some have been answered by David Deacon the CFO of Mediasurface and the last few, regarding product, by Nick Bolton the Product Marketing Director.
MEDIASURFACE WAS GOING TO FLOAT A FEW YEARS AGO, IF I REMEMBER CORRECTLY, WHAT HAPPENED THEN?
Yes we were. In 1999 preparations to float Mediasurface were under way, in conjunction with Goldman Sachs. However the plan coincided with the collapse of financial markets and the timing for the float was no longer desirable due to unfavourable market conditions. The decision to float was finally dropped in 2001.
WHAT MADE YOU FLOAT NOW?
We chose to float on the London Stock Exchange Alternative Investment Market (AIM) in order to strengthen our financial position and felt that due to the recent innovations in our product the funds raised from the float would benefit our product vision.
HOW DID YOU GO ABOUT THE PROCESS, HOW DID THE FLOAT GO?
We took the decision to float in spring 2004 and following that decision we actually moved very quickly, floating on AIM just 13 weeks after we made the decision, which is as fast as we’ve heard any company float. The share issue was oversubscribed, despite the markets being at the lowest points of activity over the last few years, which was very encouraging.
HOW MUCH CAPITAL HAS BEEN RAISED?
We raised £2 million from the float which is to be invested in capitalising on our latest product advancement, Morello, to facilitate further growth. The monies will be focussed on 3 areas: Growth - Marketing spend, Sales presence and specific product development areas, Strengthening Mediasurfaces’ financial position, and efficient execution of Merger and Acquisition opportunities
HOW MANY SHARES HAVE BEEN BOUGHT, BY WHOM?
16.6 million shares were issued in total which equates to 22% of the company. Shares were bought by existing major investors in addition to new public and private purchases. Plus, the entire Mediasurface Executive Management Team bought shares without exception.
HOW CAN THE PUBLIC BUY MS SHARES NOW?
Shares are publicly traded on the London Stock Exchange Alternative Investment Market.
I KNOW FINANCE TENDS TO BE PRIVATE BUSINESS, BUT PEOPLE SAY THAT COMPANIES LIKE MEDIASURFACE BORROWED HEAVILY AND NOW ARE VERY MUCH IN DEBT. WHAT IS YOUR BREAK EVEN PROJECTIONS, BASED ON CURRENT SALES FIGURES?
In September 2002 we had a complete management turnaround, since then we’ve concentrated on improving the businesses bottom line and are now operating debt free.
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