Pulsar Group has reduced its stake in York-based Trailight.
- The sale was valued at £1.4m and leaves Pulsar with about 1% in TrackRecord Holdings.
- Pulsar recorded a £198,000 loss from its initial investment in Trailight by November 2023.
- The sale will result in a £1.2m profit for Pulsar, aligning with its strategic goals.
- Christopher Satterthwaite expressed satisfaction with this financial manoeuvre.
Pulsar Group, a prominent SaaS provider catering to the global marketing and communications industries, has made significant changes to its investment portfolio. Recently, the company decided to divest the majority of its 21% shareholding in TrackRecord Holdings Ltd, the holding company of Trailight, which is based in York. This strategic sale was executed for a cash consideration of £1.4 million, effectively reducing Pulsar’s stake to approximately 1% in the company.
For the financial year ending November 30, 2023, Pulsar reported a loss amounting to £198,000 related to its investment in the compliance management firm, Trailight. This financial performance was reflected on Pulsar’s interim accounts balance sheet, where the carrying value of the shareholding, as of May 31, 2024, was marked at around £160,000.
Despite the earlier financial setback, the recent sale is anticipated to yield a profit of about £1.2 million. This move aligns with Pulsar’s broader strategic objectives of optimising market opportunities and bolstering the firm’s profitability and cash flow.
Christopher Satterthwaite, the non-executive chairman of Pulsar, articulated the company’s positive outlook regarding this transaction. He stated, “We are happy to crystalise the value of our minority shareholding in Trailight with the proceeds of the transaction being used in the group’s strategy of capitalising on the market opportunity and enhancing the profitability and cash generation of the company.”
Pulsar Group’s divestment reflects a strategic shift aimed at financial optimisation and growth.
