IQ Sells Rosslyn and Viewpoint Field

Struggling UK-based firm IQ Holdings is selling two of its remaining research subsidiaries to PLUS-quoted media and financial services group Rivington Street Holdings (RSH). Rosslyn Research and Viewpoint Field Services should join RSH by the end of this month.

Under the agreement, announced on Christmas Eve, the two firms will be exchanged for 5.2m ordinary 1p shares in RSH, which currently has six wholly owned active subsidiaries including financial information, trading and investment firms as well as leading PR consultancy Bishopsgate.

IQ said in November that it was considering the sale of its research units in response to 'continuing difficult trading conditions'. Last April, only three months after completing the purchase of Viewpoint Field, Viewpoint Studios and The Wire from Media Square-owned MR group Illuminas, IQ Holdings announced a net loss of £440k for the year ended 30 September 2008, with its liabilities exceeding its assets by £677k. It had already - in February - closed down telephone and online data collection firm The Wire, just three weeks after acquiring it.

The agreement is subject to acceptance by IQ shareholders including founder Julian Green, financial stakeholders VP Bank Luxembourg and First Equity Ltd, and Illuminas / Media Square. IQ's original business, IQ Research, would become its one remaining subsidiary.

RSH, which plans a wide-ranging integration and hints at synergies focusing on property and plc costs, says the transaction gives it cross-selling opportunities with its other media divisions, and helps to diversify its operations away from being 'a purely stockmarket linked group'. The new owner also believes that 'its balance sheet strength will allow it to capitalise, in a way that IQ Holdings could not afford to, on the multiple acquisition opportunities that exist in the fragmented market research market.'

RSH Chief Executive Tom Winnifrith sees 'plenty of scope to add to our bottom line', adding: 'We very much look forward to bedding in Rosslyn and Viewpoint and updating the market on our continued progress when, in a few weeks, we announce our results for the year to August 31st 2009.'

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All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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