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Zibrant announces £400k trading profit for last year of Motivcom ownership

Nigel Cooper
Major event agency Zibrant has announced trading results for the period January to November 2014 – the 11 months of Motivcom plc ownership before the business was acquired in an MBO by Nigel Cooper. Zibrant saw turnover increase by 54% and gross profit increase by 9% to £8.4m

Motivcom plc was acquired by Sodexo for £41m in November 2014 and the Cooper-led MBO saw significant changes to the Zibrant balance sheet resulting in £684k of exceptional administrative costs including the cost of separation and clearing old amortisation and balance sheet debts.  

Cooper commented “We decided that as an independent business we wanted a clean simple set of accounts from day one so we closed the books in November and announced an 11 month year allowing us to start a fresh in December after the deal completed. The group property was transferred from our balance sheet back to group at a cost of £1.75m and we also took the opportunity to wipe out the old paper amortisation debts from previous acquisitions so we went into to the new business with a cash injection, no debt and a clean slate. It just made it easier for everyone rather than trying to run a financial year under two separate ownerships.”  

“These results don’t really have any bearing on the future as there were always a series of cross charges and benefits between P&MM and Zibrant that clouded the real performance – for example, Zibrant didn’t pay any rent for our main office which we now do, but we did pay a large management charge to the group which has disappeared. These things didn’t really matter in the past as the group reported a consolidated set of accounts to the stock market.  We finished the year where we expected to.  Going forward we will be announcing our 2015 performance in mid-2016 and I am currently very happy with the progress we are making.”

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