Bonhill shares tumble 30% as it reveals potential sale

Financial publishing and events group Bonhill is considering putting itself up for sale after warning it will take a loss this year as customers continue to cut back on marketing spend.

Bonhill, which produces magazines, data analyzes and organizes events for the financial sector, said it has decided to embark on a strategic review that could lead to the sale of the group, or parts of it.

It announced the potential formal sale process, along with a profit warning and a new loan worth £800,000.

The London-based group now forecasts full-year turnover to be £15m, compared to previous expectations of £15.5 million and losses of £350,000, instead of £300,000 in profit.

In June, the group blamed “market turbulence” on a weakening of traditional media and content projects, as customers “held off discretionary marketing spend.”

Today, it said trading conditions have continued to deteriorate, resulting in weaker-than-expected digital earnings, especially in the US.

“The board of directors believes that the expected strong performance and robustness in the rest of the group’s businesses, as set forth in the interim results, will now not be sufficient to offset weak US trade,” it said. from.

London listed Bonhill Shares fell 29 percent to 4.08p in morning trading on Monday. They have lost about 64 percent of their value in the past year.

The media company said it has not yet received an acquisition approach, nor is it in talks with a potential buyer and will inform the market “in due course” about the timing of the sale process.

As a ‘precautionary measure’ Bonhill has also entered into a ‘standby’ loan facility worth £800,000 which runs until May next year.

It said it does not expect to have to use the facility “at the earliest in February.”