Media Square Plc, the AIM-traded international marketing communications group, has completed the sale of part of its marketing research consultancy business to IQ Holdings Plc for up to £1.5 million.

Media Square Plc, the AIM-traded international marketing communications group, has completed the sale of part of its marketing research consultancy business to IQ Holdings Plc for up to £1.5 million.

Media Square is set to receive an initial cash payment of £600,000 together with new shares in business research consultancy IQ Holdings worth £300,000. The deal also includes a deferred payment of up to £600,000 in cash over the following three years.

The proceeds of the sale will be used to pay off the group’s outstanding debt.

In August, the group reported that progress had been made in turning around the ailing business in the first six months of the year, with pre-tax profits totalling £900,000 compared with losses of £13.2 million in the same period in 2007.

Executive chairman Roger Parry said: “Media Square has now recovered from its period of over-ambitious and over-rapid expansion. Like other marketing communications companies, it faces difficult trading conditions and is taking action to ensure that the group is correctly positioned for such conditions.

“However, the fundamentals of strong business management are now in place, and therefore the board is cautiously optimistic about future prospects.”