Media Corporation Plc
("Media Corp" or the "Company")
Purple Lounge Trading Update
Further to the trading update of 11 April the Company provides the following trading update ahead of the publication of the interim financial results for the six months ended 31 March 2012.
In preparing the interim results it has become clear that the Purple Lounge is trading materially behind the same period of the previous financial year which will result in increased losses for the division and, as a result, the Company as a whole. The directors believe that Purple Lounge has suffered as a result of negative trade press (much of which the directors consider totally unfounded) particularly surrounding the litigation brought against one of the Company's subsidiaries by CD Casino.com Limited.
As a result of the recent losses, and resulting impact on the Company's cash position having continually funded the losses, the directors are in the process of considering a number of options for Purple Lounge as a means to control the losses and, in doing so, preserve the Company's cash and value in its other divisions. Media Corp has not received dividends or cash payments from Purple Lounge during its ownership and has loaned over £900k in the last few months. The options under consideration may be directly impacted by the outcome of the Company's stated intention of undertaking an acquisition or acquisitions. In the meantime the Company has temporarily suspended the site www.purplelounge.com.
As at 31 March the Company had cash balances of £400k with an additional £250k received on 4th April 2012 from the disposal of loss making publishing assets.
The directors hope to publish the full interim results by 31st May 2012.
Further announcements will be made as and when appropriate.
|Media Corporation Plc||Tel: +44 20 7618 9000|
|Justin Drummond - Chairman|
|Nilesh Jagatia - Group Finance Director|
|Northland Capital Partners Limited||Tel: + 44 20 7796 8800|
|Luke Cairns / Rod Venables (Nominated Adviser)|
|Katie Shelton (Joint Broker)|
|XCAP Securities||Tel: + 44 207 101 7070|
|Jon Bellis / Karen Kelly (Joint Broker)|
|Bishopsgate Communications||Tel: + 44 20 7562 3350|
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