Zinc Media Group has announced the sale of its non-core Macclesfield-based B2B publishing arm, formerly known as McMillan Scott and Ten Alps, for £100,000.
- The buyer, Specialist Business Media Ltd, is a subsidiary of The Datateam Group, which specialises in publishing and targeted marketing solutions.
- This divestment allows Zinc Media to focus on core operations in television and brand content production, aligning with its strategic growth plans.
- Zinc Communicate Publishing has been generating losses, noted by the £0.05m loss before tax in FY23.
- Completion of the sale is expected by the end of October, following customary closing conditions.
Zinc Media Group, renowned for its television, brand, and audio production ventures, has decided to sell its telesales-centric Zinc Communicate Publishing for £100,000. This business unit, based in Macclesfield, was deemed ‘non-core’ by the group, which is keen on concentrating its resources on more profitable sectors like television and brand content production. The decision to sell reflects Zinc Media’s ongoing strategy to double its business size through targeted focus on its core operations.
The acquisition by Specialist Business Media Ltd., a subsidiary of The Datateam Group, marks a significant shift for Zinc Communicate Publishing, which started in 1995 as McMillan Scott. Over the years, it underwent different ownerships and underwent a name change in 2021 to Zinc Communicate Publishing. The entity has been involved in commercial inventory sales and publication within the construction and freight industries. Despite its longstanding presence, its financial performance has been lacklustre, posting a revenue of £2.2 million but a loss before tax of £0.05 million in the recent fiscal year.
Zinc Media’s decision to divest comes after recognising that the publishing unit occupied substantial management time and resources without corresponding financial returns. This step allows Zinc Media to channel its efforts into its main growth areas like television production, which has seen significant expansion in recent years. Mark Browning, CEO of Zinc Media, expressed gratitude towards the Macclesfield team while acknowledging the necessity of this strategic realignment.
As the publishing business transitions to its new owner, Specialist Business Media Ltd, it will cease to trade under the Zinc Communicate Publishing name. The new owners, who operate across sectors such as construction, healthcare, and electronics, are well-positioned to integrate and expand the offerings of the publishing unit, leveraging their expertise in digital and print media and targeted marketing solutions.
The financial details highlight that Zinc Communicate Publishing had net assets valued at £0.8 million as of December 31, 2023. These assets include a high volume of small debts maturing over the next three years, although the realisation of these balances may incur additional costs. The sale, led by Trillium Partners, was part of a competitive process. The anticipated closure is set by the end of October, subject to the completion of standard closing conditions.
This strategic divestment allows Zinc Media Group to sharpen its focus on high-growth areas within its core operations.
