Eagle-eyed analyst Bob Willott of Marketing Services Financial Intelligence has spotted that a huge chunk of money seems to have gone missing from Newcastle agency Robson Brown, recently acquired out of administration by Mission Marketing Group.
Here’s part of his report.
Robson Brown mystery: where did nearly £9m of assets go?
Nearly £9 million of Newcastle advertising agency Robson Brown’s net assets were lost between 28 February 2009 – the date of its last accounts – and 29 November 2010 when administrators were appointed.
This astonishing revelation is contained in the statement of affairs filed by administrators from Zolfo Cooper earlier this month. During the period, Garfield Ricketts’ Round 2 International UK acquired Robson Brown and it remains unclear how that transaction was financed.
The revelation begs the simple question: how could a profitable company with net assets of £3.3 million in February 2009 be reduced to a situation where it had a deficiency of £5.4 million – a deterioration of £8.7 million – in just 21 months?
How indeed. Some questions for US-based outfit for Round2 International to answer surely.