Cash strapped Brilliant surrenders to Mediacom

Dec. 6, 2011 - PRLog -- Mediacom has come to the rescue of cash strapped Brilliant Media Group by acquiring the business after a continuing financial crisis followed the loss of major clients DFS and Asda in March this year.  Brilliant’s finance director Craig Megretton has resigned.

According to a report in "Marketing Services Financial Intelligence", Brilliant's most recently filed accounts showed that the group’s short term liabilities exceeded readily realisable assets by £9.4 million at 31 March 2010.   Among those liabilities was an amount of nearly £4.6 million owed to the group’s bankers.

"The group’s biggest asset was entirely intangible – some £19.5 million attributed to goodwill arising from a restructuring of the group in 2009", the report said.

"Marketing Services Financial Intelligence" commented that the agency had become potentially more vulnerable to client losses after a financial restructuring in April 2009 when the group’s own cash resources and a bank overdraft were used to buy out some of the shares in Brilliant Media Group held by founders David Moutrie and Stephen Lane.

Both DFS and Asda moved their business from Brilliant to WPP Group’s Mediacom global buying network, making Mediacom an obvious agency to absorb some of the Brilliant staff and residual business.

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"Marketing Services Financial Intelligence" provides financial news and analysis about the marketing communications industry, edited by industry expert Bob Willott, an accountant and former special professor at the Nottingham University Business School