18th Jun 2019 11:51
(Alliance News) - 1PM PLC said Tuesday recently acquired Positive Cashflow Ltd had achieved its earn-out targets one year early, which will see 1PM deliver two tranches of 1.4 million shares to the sellers who are also senior managers at the unit.
In 2017, 1PM proposed to buy Positive Cashflow for up to GBP9.0 million. Of this 2.5 million was a share element to be paid at 60 pence each should it achieve unspecified pretax profit targets over the next three years.
Shares in 1PM were 2.8% higher at 42.68 pence in London on Tuesday.
"The management team at Positive Cashflow and their entire workforce have delivered an excellent performance in competitive trading conditions and I am delighted the group can consider the earn-out complete one year early. This is a stand-out achievement," 1PM Chief Executive Officer Ian Smith said.
1PM will pay the earn-out consideration through 1.4 million shares being issued in October 2019 and October 2020.
With the earn-our achieved, Positive Cashflow Managing Director David Smith has announced his intention to stand down at the end of June to "pursue other business interests." Fellow founding member Phil Chesham will then be promoted as head of the business.
"Positive Cashflow and 1PM Group is indebted to the leadership of David Smith in delivering this performance and he leaves a legacy of a very successful business which Phil Chesham and the team will now develop and grow further," 1PM's Ian Smith explained. "We thank David for his significant contribution and wish him well in his future career."
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