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UPDATE - Porta Communications ready to return to the acquisition trail

Published: 07:20 23 Oct 2014 EDT

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Shares in the marketing and communications specialist Porta (LON:PTCM) rose 7% after it said it is in advanced discussions over two acquisitions, which if successfully completed would have a “marked impact on both trading levels and profitability”.

Porta’s plans were mapped out in a progress report, which revealed its last purchase, Redleaf PR, “continues to trade ahead of budget with a regular flow of new business activity”.

The main UK public relations business, Newgate Communications, has won 15 new clients and projects, including the investment promotion agency of the Government of Mauritius.

Overseas, Newgate Australia remains the group's “star performer”, Porta said, while the Singapore and Hong Kong offices are trading “profitably in very competitive markets”.

Turning to advertising, the 21:12 agency has been profitable for the last two months, helped by projects for BNY Mellon, Hermes Asset Management and JP Morgan.

TTMV, its agency based in Tunbridge Wells, is now operating with a “much reduced” cost base, which means it will have a significantly stronger final quarter following two recent new business wins.

Chief executive David Wright said: "We are encouraged by the current trading and pipeline in each of the business units.

“We are seeking to conclude the acquisitions before the year end and we expect them to have a material positive impact on the profitability of the business in 2015."

At 10.35 the shares were up 8% at 7.1p, valuing the business at £20mln.

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