NEWS7 January 2010

IQ agrees sale of Viewpoint Field and Rosslyn Research


UK— IQ Holdings has agreed to sell its Viewpoint Field and Rosslyn Research divisions to Rivington Street Holdings (RSH), a minority shareholder.

The all-share deal is valued at £1.5m, and RSH has also agreed to assume £1.8m in debt from IQ. Difficult trading conditions prompted the sale of the businesses, with results for the year ended 30 September 2009 “significantly below market expectations”.

In a statement announcing the deal, IQ acknowledged that it needed to make further acquisitions to grow its business, which “at this current point in time, it does not have the cash resources to do”.

Rosslyn was bought by IQ in November 2007 and unaudited management figures for the year to September 2009 show turnover of £508,240 and a profit before tax of £45,388.

Viewpoint, meanwhile, was one of two businesses IQ acquired from Illuminas, the research agency owned by Media Square. The other was CATI and CAWI centre The Wire, which ceased trading in February – a month after the takeover was completed.

Unaudited management figures for Viewpoint for the eight months to September 2009 show turnover of £1,663,398 and profit before tax of £41,311.

If the sale of Rosslyn and Viewpoint to RSH is approved by IQ shareholders, IQ will become an ‘investing company’ under AIM stock market rules as it will have no remaining trading businesses. Its principal asset will be a stake in RSH worth £50,000.