RNS Number : 8171W
Daisy Group PLC
04 August 2009
4 August 2009
Daisy Group plc
Acquisition of AT Communications Group and Eurotel
Board appointment
Daisy Group plc ('Daisy' or the 'Company') announces that its wholly owned subsidiary has entered into agreements to acquire the trading assets of AT Communications Group plc (the 'AT Communications Assets') and the trading assets of Eurotel Limited (the 'Eurotel Assets') (together the 'Acquisitions'). The Board of Daisy is also pleased to announce the appointment of Ian Butcher as a non-executive director to the board, with immediate effect.
The AT Communications Assets
AT Communications Group plc ('ATC') is a UK based information and communications technology company focused on the delivery of IP-based solutions and services to small, medium, and large enterprises. In the year ending 31 December 2008, audited revenue and EBITDA for ATC's continuing business were approximately £52.9m and £5.3m respectively. ATC subsequently announced on 1 June 2009 that these results included turnover of £6m which was accrued but not received as a result of a particular project delay. In the six month period ending 30 June 2009, unaudited revenue and LBITDA were approximately £19.9m and £(3.5)m respectively. The AT Communications Assets comprise three operating divisions, being network services, maintenance and consulting. ATC entered administration on 3 August 2009.
The consideration has been satisfied through the payment of £7.0m in cash and the issue of 1,169,591 warrants, exerciseable into one ordinary share in the Company at a price of 85.5p each.
The Eurotel Assets
Eurotel Limited ('Eurotel') is a telecoms and IT supplier based in Halifax, Yorkshire. In the year ending 31 March 2009, Eurotel's unaudited revenue and EBITDA were approximately £30.2m and £3.5m respectively. In the three month period ending 30 June 2009, unaudited revenue and EBITDA were approximately £6.5m and £0.5m respectively. The Eurotel Assets have five principal revenue streams: fixed line calls, mobile telephone services, broadband services, and the sale and maintenance of telephone hardware. Eurotel entered administration on 3 August 2009.
The consideration has been satisfied through the payment of £13.5m in cash and the issue of 584,795 warrants, exerciseable into one ordinary share in the Company at a price of 85.5p each.
Board appointment - Ian Butcher
Ian was Group Finance Director of The Go-Ahead Group plc, one of the UK's leading providers of passenger transport services operating in the bus, rail and aviation services sectors, between 1996 and 2007, taking a lead role in transforming it into a well-respected FTSE 250 company. His work there led to Ian being voted FTSE 250 and Overall UK FD of the Year in the CBI FD Excellence Awards in 2006.
Prior to Go-Ahead, Ian was Group Finance Director for Casket plc, the consumer products group, between 1990 and 1995, overseeing its rationalisation, successful turn-around and subsequent growth through acquisition. Previous experience includes a Finance Director role at Anglia Oils Limited. Ian qualified as a Chartered Accountant with KPMG where he stayed for 12 years and during which time he worked extensively in the corporate finance and restructuring fields. Currently, Ian is Non-executive Director and Audit Committee Chairman of Redhall Group plc, the engineering services business.
Commenting on the Acquisitions and the board appointment, Peter Dubens, Chairman, said,
'The acquisitions of AT Communications and Eurotel support our strategy for providing a converged product set to this target market. This is a positive step in our growth plans.
'We are also pleased to welcome Ian Butcher to the Board. I believe Ian's strong financial background and 22 years of experience of building up companies will make a significant contribution to the Company's development going forward.'
Matthew Riley, Chief Executive Officer of Daisy, said:
'These transactions are the first steps for Daisy in executing its strategy to consolidate the fragmented reseller market and become a dominant force in the SME and mid-market arena.
'Both companies have good reputations within the industry and, as part of the Group, will support Daisy in delivering an excellent service in all areas of communications, from product quality to customer service, further strengthening our converged product set and enhancing our offering to the UK business community.
'I'd like to thank the team for their efforts in the completion of both deals. Their hard work means we have been able to ensure customers of both businesses will suffer no loss of service.'
-ends-
For further details, contact:
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Daisy Group plc
Matthew Riley, Chief Executive Officer
Peter Dubens, Executive Chairman
Stewart Porter, Chief Financial Officer
Katharine Butler, PR Executive
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Tel: 01282 607785
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Liberum Capital Limited
Steve Pearce
Tom Fyson
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Tel: 020 3100 2220
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Financial Dynamics
Juliet Clarke
Ed Bridges
Erwan Gouraud
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Tel: 020 7831 3113
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The following additional information falls to be disclosed in relation to Ian Philip Butcher (aged 58) in accordance with paragraph (g) of Schedule 2 to the AIM Rules for Companies:
Current directorships: Redhall Group plc
Previous directorships:
Brighton Transport (EBT2) Limited
Compass 315 Limited
East Surrey Bus Services Limited
OK Motor Services Limited
Brighton Transport (EBT1) Limited
Brighton Transport (1993) Limited
The Wycombe Bus Company Limited
The Go-Ahead Group QUEST Trustees Limited
Levers Coach Tours Limited
Hants and Dorset Bus Company Limited
OK Motor Services Limited
Airport Vehicle Engineering Limited
A V E Aviation Containers Limited
A V E Towing Limited
Franess Limited
Midland Airport Services (Holdings) Limited
Plane Trucking UK Limited
The Go-Ahead Group plc
Aardvark Parking Limited
Abingdon Bus Company Limited
Air Vehicles Limited
Aviance UK Limited
Birmingham Passenger Transport Services Limited
Blue Triangle Buses Limited
Boomerang Parking Limited
Brighton & Hove Bus and Coach Company Limited
Chauffeured Parking Services Limited
City of Oxford Motor Services Limited
Club Holidays (VO) Limited
Docklands Minibuses Limited
Elmcrest Croydon Limited
Gatwick Handling Limited
G H Heathrow Limited
GHI Limited
GH Manchester Limited
GH Stansted Limited
Go-Ahead Finance Company
Go-Ahead Leasing Limited
Go Coastline Limited
Go North East Limited
Go London Limited
Go Metro Limited
Go Northern Limited
Go-Reading Limited
Go South Coast Limited
Go Wear Buses Limited
Go West Midlands Limited
Hants & Dorset Motor Services Limited
Hants & Dorset Trim Limited
Levers Coaches Limited
London Central Bus Company Limited
London General Transport Services Limited
Marchwood Motorways (Services) Limited
Marchwood Motorways (Southampton) Limited
Meet & Greet Parking Limited
Meteor Parking Limited
Metrobus Limited
Metrocity (Newcastle) Limited
Midland Airport Services Limited
Nikaro Limited
P.A.S. Direct Limited
PAS Gatwick UK Limited
Pink Elephant Parking Limited
Plane Handling Limited
Reed Aviation Limited
Reed Investments Limited
Solent Blue Line Limited
South Central Limited
Southern Vectis Coaches Limited
Southern Vectis Commercials Limited
Southern Vectis Limited
The Birmingham Omnibus Company Limited
The Go-Ahead Group Trustee Company Limited
The Southern Vectis Omnibus Company Limited
Thames Trains Limited
Tourist Coaches Limited
Victory Railway Holdings Limited
Vikki Osborne (I.W.) Holidays Limited
Wilts and Dorset Bus Company Limited
Wilts & Dorset Holdings Limited
Wilts & Dorset Investments Limited
GOVIA Limited
London & Birmingham Railway Limited
London & East Midlands Railway Limited
London & South Eastern Railway Limited
New Southern Railway Limited
North London Orbital Railway Limited
Thameslink Rail Limited
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