Shed profits hold firm as takeover talks continue

Shed Media held underlying annual profits at 12m, compared with 11.9m in 2008, and said 2010 had started well despite ongoing challenges in a market hit by cutbacks due to plunging advertising revenues.

Negotiations are ongoing with its takeover suitors - a buy-out consortium made up of Bowmark Capital, Darwin Private Equity and members of its management team.

Shed's independent directors have been reviewing the consortium's approach since December.

Four directors including chief executive Nick Southgate own almost a third of the business, which is valued at around 68m.

Both members of the potential buy-out team have previous experience in the media sector. Bowmark owned a 20 per cent stake in Wife Swap maker RDF Media until 2005, while Darwin was a previous investor in production and distribution firm All3Media.