Further to the announcements released on 7 December 2011 and 11 January 2012 regarding the disposal of certain assets held by its Media division, the Company is pleased to provide the following trading update regarding the year ended 31 December 2011.
Following the disposals referred to above and the orderly wind-down of Adventis Health, which was announced on 19 September 2011, the Group's principal business now comprises two complementary technology marketing services businesses, Second2 Limited and bChannels Limited (the "Technology division") along with a small property marketing creative agency, Gilbert Doyle Oakmont Limited which trades as AP Marketing.
For the year ended 31 December 2011, the Group is expected to report gross revenues of approximately £29.0 million, gross profit/net revenues of approximately £10.0 million, and an operating profit before central costs of approximately £0.5 million. Central costs will be approximately £1.2 million before interest. In addition, exceptional reorganisation costs, relating to the closure of the Health division and restructuring of the board will be approximately £0.5 million. Goodwill impairments already announced in relation to the Health division closure and sale of the Media businesses will be approximately £4.3 million. The directors of the Company believe that the Group's restructuring programme is substantially complete.
For the year ended 31 December 2011, the Technology division, which is now the core continuing activity of the Group, is expected to report gross revenues of approximately £8.0 million, gross profit/net revenues of approximately £4.6 million, and an operating profit of approximately £0.5 million.
The Technology division enters 2012 with a significant recent contract win from a major global technology brand and is exploring an opportunity to establish a presence in North America. Sales and other synergies are being realised and the division's proprietary software platform, Partnermarketing.com, is seeing good growth in client numbers and revenues.
Group bank indebtedness at 31 December 2011 was £2.2 million. It is expected that realisation of retained net working capital following the sale of certain assets held by the Media division will generate net inflows of approximately £0.5 million, which will be used to reduce indebtedness.
The Board expects to provide a further update on trading at the time of the announcement of its preliminary results for the year ended 31 December 2011 which is expected to be released in April 2012.
Nick Winks, Chairman of Adventis Group plc, commented: - "2011 was not a good year for Adventis, although we have made reasonable progress in cutting head office costs and selling or closing underperforming businesses. The 2012 priority is to focus on integrating and growing our technology businesses. Debt levels are being managed down and, while much remains to be done, the directors view the future prospects of the Group with cautious optimism."