Vision Media Group International | News
15 May 2007Indication of interest by a major advertising company
ScreenFX plc ( AIM: SFX), the digital advertising and communications specialist, announces today that the Group is pursuing strategic alternatives with respect to its retail (Malls) business unit, and, in connection therewith, has signed a non-binding indication of interest with a major advertising company, which grants the company exclusive rights for a limited period of time to finalise an agreement for the acquisition of the retail (Malls) business unit.
Following the announcement in April in which the Group secured the digital rights to 13 'super' malls owned by Land Securities, ScreenFX's retail portfolio now consists of 40 'super' malls throughout the UK that have an annualised footfall estimated at 750 million consumers. It has been the scale of this potential audience coupled with the advertising industry's well documented move from traditional outdoor formats to digital that has allowed the Group to enter into these discussions.
The outdoor media market in the UK, as well as in the US, continues to make the transition from traditional to digital formats. This industry trend has been highlighted by a number of recent announcements by major companies detailing their own expansion into digital format advertising. This trend is clearly illustrated by the r ecent tenders for Heathrow Terminal 5 and TfL London Underground which required digital executions in their outdoor contracts.
Mike Cottman, Executive Chairman, said: "The signing of this indication of interest with a major advertising company is a significant milestone for the Group. If concluded successfully, then we believe that this agreement will vindicate the strategy that ScreenFX has implemented since its inception and will provide us with the proceeds to develop other digital screen based advertising sectors, notably our TrainFX franchise .
"Whilst ScreenFX has been successful in building the critical mass in our retail business unit, we have not had sufficient internal resources and expertise to maximise the advertising revenues in this comparatively new medium. We believe that the major advertising company we are in discussions with has the scale and market positioning to deliver the necessary volumes onto the ScreenFX platform. We look forward to further updating the market on these exciting discussions when it is appropriate."
For further information:
| ScreenFX plc | |
| Mike Cottman, Executive Chairman | Tel: +44 (0) 161 428 5544 |
| mikec@screenfx.com | www.screenfxplc.com |
| Seymour Pierce Limited | |
| Stuart Lane / Sarah Jacobs, Corporate Finance | Tel: +44 (0) 20 7107 8000 |
| sarahjacobs@seymourpierce.com | www.seymourpierce.com |
Media enquiries:
| Abchurch | |
| Henry Harrison-Topham / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| henry.ht@abchurch-group.com | www.abchurch-group.com |
back to latest news back to top