Interest shown in adverts company

Oct 24 2007 by Chris Knox, The Journal

A BUSINESS that has fixed advertisement boxes to most of the bus stops in Newcastle is hopeful that it will find a buyer after being forced into administration.

Blyth-based Direct Message ran into trouble after a number of key contracts were delayed, including one for a major rail network worth more than £1m.

The company was reliant on the proceeds of the contracts after making a significant investment into upgrading its technology.

The business, based in the Blyth Industrial Estate, is confident it will be able to keep all of its 28 staff after receiving interest from a number of potential buyers.

Tony Dickinson, managing director at Direct Message, said: “We have grown a substantial client base over the years and represent a very attractive proposition.

“We are confident of a quick sale and to develop the business from there.”

Before running into difficulties, the business recorded an annual turnover of £3.1m, which was the result of steady growth over the last five years.

“We very much believe that we can speed up this growth rate on the sale of the business and bring in people that can take our operations forward.

“We do not foresee job losses at this point. In fact, we hope to see the creation of more jobs after the purchase,” Mr Dickinson said. The firm has attracted a number of big international clients over its 30-year history. As well as servicing Newcastle’s bus stops, it also supplies its light-boxes to Nexus for use in the North-East’s Metro system as well as the underground in Brussels and a Singapore taxi company.

It has also won a number of awards, including the Robert Muckle Export Award in 2000.

The business was founded in 1977 as an independent company before being taken over in 2000 by aerospace development firm L Gardner, which then went into receivership in 2003.

The administration of the business is currently being handled by Newcastle-based firm RMT Accountants and Business Advisors.

Linda Farish, recovery and insolvency director at RMT, said: “Direct Message has an excellent, patent protected product and is highly thought of by customers and suppliers, so we are hopeful of securing agreements which will enable the company to trade through the crisis.

“Having won lucrative orders and invested in equipment to deliver them, the company found the time-scales were delayed by the customer. This has created cash flow problems which forced the company into administration.”