MEDIA SQUARE (MSQ).

Investors Chronicle, July, 2006

Although still far from being the finished article, Media Square is getting there. It has been transformed by its GBP63m acquisition of Marketing Services Group (MSG), and some considerable reorganisation. For example, 80 per cent of the group's UK marketing communications division is now made up of the companies acquired through MSG.

But an increase in home shopping put pressure on margins in UK marketing services. The marketing services division accounts for around 43 per cent of group operating profits and includes clients such as Argos, B&Q, Homebase and Habitat. Considerable expansion is now planned for production and design facilities, which will again have a short-term affect on profits.

Broker Bridgewell Securities expects 2006-07 pre-tax...

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