Increased Focus on New Markets Through Reduction of Corporate Debt.
US marketing company Bark Group Inc. (OTCBB: ВКРG ) has joined the new-wave of independent names emerging from the global recession with a renewed focus on controlling debt and increasing profits. The integrated advertising and performance-based firm recently unveiled plans to reduce corporate debt via a strategy that will see them undertake significant restructuring over the coming months.
Bark Group (OTCBB: ВКРG), announced that they had successfully managed to convert for more than $1 million of debt into straight equity. Simply put, that means Bark Group's lenders believe that one million worth in shares in ВКРG will be worth significantly more than one million Dollars of cash! You do the math what THAT signifies for your own portfolio...
Bark is one of the leading providers of integrated marketing services, offering clients the convenience of a combined advertising, media and digital agency under one roof. The company has followed the recent decision to close one of its affiliate offices in Copenhagen by disposing of its remaining 'non-operational' holdings in Denmark, including: Bark A/S, Bark Advertising A/S. Bark Media Aps and Bark Property. This move has improved the balance of the company with more than $10 million.
The move is aimed squarely at reducing costs, and forms part of a strategy focusing on the long-term profitability of the company's remaining affiliate and now principal operating presence, Bark Stockholm. Running a tight ship also allows creative firms such as Bark Group to free up resources – making new acquisitions that are better aligned with their strategy of becoming a top-10 ad agency.
And sure enough, last week ВКРG announced they are going to open a media division in Spain. This is not only an additional revenue stream but also a way to cut costs, as they can now move some advertising tasks to their office in Spain, where the salaries are less than 1/3 compared to the division they closed down in Denmark just a few weeks before. In addition, Bark Group ( ВКРG ) have identified acquisition targets in Norway, and they have further targets lined up for 2010-2012, propelling them to expected revenues of $227 million when they're done.
Of course Bark isn't the only company with a keen eye on the balance sheet these days. For those independent names lucky enough to emerge from the global recession relatively unscathed, the importance of long-term planning has never been greater. Bark Group ( ВКРG ) is keenly aware of their responsibility for ensuring shareholder value through high-profile clients, low overheads and providing the best advertising and marketing solution all round.
I believe it is just a matter of time before the stock in ВКРG shoots back up the charts in a mad run so it once again reflects its internal value.
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