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Photon Revenue Falls
Australian marcoms and research group Photon has posted a 10% fall in revenue to $AUD 587.3m, and an $AUD 87.5m loss for the year ending 30 June 2010. Earnings in its Strategic Intelligence Division, which includes TLE and Jigsaw, fell 8% to $AUD 11.1m.
 In addition to research agencies TLE (The Leading Edge) and Jigsaw Strategic Research, the division includes brand communications specialist Bellamyhayden and media strategy consultancy Naked Communications. Photon cited adverse currency movements and continued decline in the market research sector as reasons for the drop.
The group announced several months ago that it was struggling to pay the $AUD 176m worth of earn-out payments due to the owners of several agencies it had acquired. CEO Jeremy Philips has since persuaded them to accept reduced up-front cash worth 35% of the total payout, and 15% of the payout in Photon shares with the remainder made up of a deferred cash payment.
Trading on the ASX (Australian Stock Exchange) was suspended while the company attempted to re-capitalise. However, last week, the group was re-instated on the ASX, and completed the first stage of its recapitalization plan to raise funds through a $AUD 102.5m share placement.
Photon's shares have fallen by around 30% since last Wednesday, and are now trading at just below 10c. Before the company left the ASX, its share price had been above $AUD 1.
Web site: www.photongroup.com .
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