Bonhill loses nearly a third of its value after announcing sale plans
Bonhill Group lost nearly a third of its value this afternoon after the financial publisher confirmed it was mulling a sale.
In a trading update, the London-listed company, which produces magazines and events for financial advisors, said it would be conducting a strategic review, which could lead to a sale of the business, or at least parts of it. The firm said it was yet to receive any takeover approaches.
The media group cited ongoing “market turbulence” as the key driver for this fate, explaining how clients continued to slash marketing spend in recent months.
To make matters worse, it also posted weaker-than-expected digital revenue, especially in the US.
Bonhill said it expected revenue of £15.5m and EBITDA of £300,000 for the year ending 31 December, with a loss of approximately £350,000.
The company confirmed that it had also agreed a £800,000 standby loan from its biggest shareholder, Rockwood Strategic.
Shares tumbled over 33 per cent this afternoon, adding to the stock’s nearly 50 per cent plummet in the year to date.