Housing trust buys PR co

Brighton Housing Trust's acquisition of social enterprise PR company Green Rocket CIC, which was announced yesterday, was driven by the profits of its sister company, the private sector Blue Rocket.

Brighton Housing Trust (BHT) bought both Blue and Green Rocket from founder Kim Stoddart as part of its drive to diversify the housing trust's income and become more self-sustainable. Both PR organisations will now operate as social enterprises with all profits going to BHT's charitable work tackling homelessness.

BHT CEO Andy Winter said Green Rocket was the first social enterprise BHT Enterprises had bought, although it previously set up, and still runs, two of its own.

He added: 'We were actually much more attracted to its sister company Blue Rocket and would not have bought Green Rocket without its private sector partner. With six years' trading history Blue Rocket has been profitable since day one and, while Green Rocket has a lot of potential, Blue Rocket was a much more attractive prospect from BHT Enterprises' perspective.'

He added: 'Some may express surprise that BHT has branched out in this direction, but for us it makes perfect commercial sense. Through the gift-aiding of profits we will continue to focus on our primary aim of tackling homelessness.'

Stoddart will continue to be involved as a retained consultant while moving to Wales to become a smallholder and part-time business consultant.

She said: 'The typical move would have been to sell to another PR company but I wanted to protect our commitment to putting clients' interest first and looking after our team of rocketeers. The deal with BHT is a perfect fit in terms of ethical culture as well as entrepreneurial ambitions.'

The sale means that Green Rocket will no longer exist as a legal entity in its own right.

Blue Rocket account director Vicky Hoad said: 'As a small professional services social enterprise Green Rocket CIC did not have extensive assets. Seventy-five per cent of profits were distributed to local environmental awareness initiatives as they were accrued over its two and a half year history, so no cash was transferred over.

'All other assets including all members of staff at both companies, intellectual property, contracts with clients and the brand were transferred over to BHT Enterprises Ltd as part of the deal.'

She added: 'The ethical ethos at both Blue and Green Rocket remain unchanged and the companies will continue to support charities and social enterprises with discounted rates.'

Winter said that more venture acquisitions by BHT Enterprises could be expected later in the year.