The share price of beleaguered marketing and communications group Media Square dropped 14 per cent yesterday following revelations by its executive chairman, Roger Parry, that the AIM-listed company was held together with ‘string and Blu-Tack’ before he joined it in July 2007.
In a trading statement released yesterday, Parry said he was grateful the past trading year had come to an end, adding, ‘The company has gone through a traumatic period of painful self-evaluation and costly restructuring.’
Traders reacted immediately to the news that the restructuring would hit profits and Media Square’s share price fell from 9p to 7p.
Parry told Design Week today that financial figures would not be broken out for the separate divisions until the interim results for 2007-2008 are published in June.
He points out that Media Square is not yet out of the woods. ‘The macro-economic prospects for marketing communications in the UK are challenging, which means that the Board is cautious about prospects for the next 12 months.’
When Parry joined, Media Square was a disparate collection of about 40 different consultancies. He has spent the past six months re-aligning them to create three new divisions and streamlining the number of separate business down to 15.
David Worthington was appointed as chairman of the design division in October last year.