Porta Communications in early talks with prospects as it begins acquisition drive
Porta Communications is set to embark on an acquisition drive after raising £7m through a sale of ordinary shares.
The marketing services group has raised funds to reduce its debt and has now announced plans to embark on "the next phase of growth" and is already in preliminary talks with UK PR and advertising targets, it has revealed.
The sum of £12.1m has been set aside, including £7.7m in cash and the rest made up in ordinary shares.
Although talks are still early, Porta has also revealed that the acquisitions, expected to cost £3.3m, would add a combined annual fee of £8.75m and net profit of £1.75m to the group.
At the same time, Porta Communications will also acquire the remaining 20 per cent of financial PR agency Newgate Threadneedle for £0.9m.
The Company has also stated that it expected to report revenue and fee income for the six months up to 31 December 2013 of approximately £14m and £6.9m respectively.