Mercator Media Limited
6 July 2009
Mercator Media Limited in Hampshire is one of a number of local South East companies which applied for, and received, funding via Business Link and is now facing the downturn with renewed optimism.
Mercator Media Ltd applied to the Bridging Mezzanine Debt Fund as a result of being caught up in the Icelandic banking crisis. Mercator produced a successful edition of the Icelandic Fisheries Exhibition in early October 2008, just as the Icelandic government was forced to nationalize the banks. The result was to tie up an important part of Mercator's working capital.
Mercator Media, a B2B media company, publishes business magazines, runs trade exhibitions, events, conferences and websites in the commercial marine sector. Its magazines include Maritime Journal, The Motor Ship, Boating Business and World Fishing, and events such as Seawork, held annually in the Port of Southampton.
SEEDA’s Executive Director Skills and Sustainable Prosperity Oona Muirhead CBE, says that while these might be difficult times, SEEDA can offer hope for businesses adversely affected by the crisis through the Transition fund.
"Mercator is a good example of a strong company affected by a cash-flow problem due to the global banking crisis, which could have been terminal. With SEEDA’s help, and with Finance South East turning round their application in a matter of days, the company is now looking to global markets.
"I’m delighted that we were able to help this company and others, get through difficult times and take action to grow their customer base. I’d really encourage all companies facing difficulties to reach out for help. That’s exactly why SEEDA funds Business Link as the first port of call for all businesses."
Based in Fareham, Mercator has 43 employees, has Investors in People (IiP) status and has been trading since 1989. The company is profitable and turnover for 2008 was projected to be £4.3m. This is an increase of 40% on the previous years due to a number of acquisitions including The Motor Ship and the Icelandic Fisheries Exhibition. Export earning now account for more than 60% of turnover.
Mercator has an ambitious strategy to develop the business over the period 2009 -11 with the aim of increasing turnover to £10m. This is based on organic growth, selective niche acquisitions and joint ventures. The Board believes prospects are good despite the world economic slowdown and is confident its strong position (e.g. market leading B2B brands) will allow it to withstand any further economic turbulence. Increasing diversification across its three main sectors of magazines, events and online will assist in this process.
Mercator enquired about the Bridging Mezzanine Debt Fund through Finance South East and a full application was submitted in late November. Some additional information was sought and credit proposal completed indicating the 'credit crunch' issues facing the company and subsequently a £100k funding was approved and loaned in December 2008.
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