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BI ditches loss-making businesses to focus on UK

03/04/2012

BI Worldwide Holdings, which owns BI Worldwide Ltd, has turned around a £4.5m loss in 2010 by selling its interests in four other companies to US parent company Schoeneckers Inc for £3.6m.

After disposing of its shares in BI Worldwide Australia, Coalition Marketing Europe, Mint Shanghai and Mint Singapore, BI Worldwide Holdings finished the financial year ending 30 June 2011 with a profit before tax of £981k.

Group turnover increased from £19.6m to £25.4m and gross profit rose from £6m to £8m, but after administrative expenses total operating loss stood at £1.9m.

According to the directors’ report, all of the businesses were loss making except UK-based BI Worldwide, which delivered £519k profit before tax on a turnover of £19.3m (a loss before tax of £738k was recorded in 2010).


The report said: “The only remaining operating entity, BI Worldwide Ltd, has recorded an acceptable profit for the financial year. The company is appropriately scaled to remain profitable going forward with profit level ratios on par with its main competitors.”

The Milton Keynes-based company has set a number of key performance indicators (KPIs) for the current financial year, which include ‘modest growth’ in turnover to £20.1m and gross profit of £6.8m. Profit before tax is forecast at £660k and the agency hopes to acquire £1.4m in new business.



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