Italian PR and communications agency SEC to list on AIM

SEC, an Italian public relations (PR) and communication’s agency, announced on Monday it would apply for admission to AIM, the London Stock Exchange’s junior market, aiming to raise €4-6m.

The company hoped that the admission to AIM would allow greater access to funds, which can be used for acquisitions, the recruitment of better qualified staff and the to retain its best talent by allowing it to offer publicly traded shares, and to raise the profile and reputation of the PR firm.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were €3.4m for 2015 on revenues more than €21m. Compound annual growth rate (CAGR) was 44% over the last two years.

The first dividend following admission to AIM to the end of the year is expected to be paid in late spring 2017 subject to shareholder approval.

Fiorenzo Tagliabue, president and founder, said the company developed through organic growth and acquisitions in Brussels, Spain and Germany, and was in advanced negotiations to acquire a London-based firm with excess turnover of £3m.

Tagliabue added: "The listing will give us precious resources to provide additional drive and enthusiasm, with a particular and strategic attention to the opportunities offered by the digital field.

“Through listing we want to transform SEC from the company it is today into a public company, with an increasingly significant stake in those who cooperate with us in Italy and abroad."

Chief executive Cesare Valli said there had been a rise in corporate regulations because of the 2008 financial crisis, which has increased the need for PR services globally. Although most of the market is dominated by UK and US firms, Europe is home to 108 of the top 250 PR firms. SEC targets future expansion in Latin America and Asia.

The Holmes Report in 2016 suggests the PR industry will grow by 7.1% over the next five years to $20bn by 2020.

Valli added: “While SEC's strategy is one of growth, the underlying businesses are established and generate a return in cash.

“Accordingly, the directors intend to pay a nominal dividend, annually, pursuant to Italian regulations, and adopt a progressive policy, assuming that it is prudent to do so at the time”.

Among the top company's management were: Nigel Payne, former chief of Sportingbet, David Mathewson, the former finance chief at Playtech and Luigi Roth, Pirelli's former non-executive chairman.