Multimedia Corp Plc is in search of a savior. The Bolton, UK- based publisher of multimedia CD-ROMs has had a tough 12 months, posting net losses of 1.0m pounds for the year to December 31 compared with prior year profits of 123,000 pounds. Revenue was down 0.6% at 2.4m pounds and chairman Duncan Thomas has announced that the company is looking to save overheads by merging with an unspecified larger group. Poor sales margins were blamed on the difficult market conditions encountered in 1996 and the firm has been forced to respond with a whole range of cost-saving measures. One third of the office space has been sub-let, at least 17 members of staff have lost their jobs so far and the two founding members have resigned from the board. Thomas has also resigned, moving into a non-executive chairman’s role. On top of all this, slow advances and the alarming threefold increase in stock and work in progress have prompted a 500,000 pound write- down in the carrying value of existing titles. Unsurprisingly, in the light of its manifold woes, the company is not intending to pay a dividend.
Content from our partners
