14th Apr 2008 14:26
Avesco Group PLC14 April 2008 For immediate release 14 April 2008 AVESCO GROUP plc Acquisition Avesco Group plc ("Avesco" or the "Group"), the international media servicesgroup, announces that it has acquired the entire issued share capital ofTelecast Communications (UK) Limited, together with certain of its subsidiaries(the "Charter Broadcast Group", an outside broadcast services group), for aninitial consideration of £2.1m together with a contingent payment relating tothe sale of an outside broadcast vehicle owned by the Australian subsidiary ofthe Charter Broadcast Group. The initial £2.1m consideration has been paid infull in cash on completion from the Group's existing resources. A furtherpayment will be required to be made by Avesco in the event that the outsidebroadcast vehicle is sold within two months of the date of this announcement,such payment being equivalent to the net profits on the sale (less certaindeductions) with payment being made from the profit arising. The Charter Broadcast business will be combined with Avesco's existingPresteigne business and the division as enlarged by the acquisition will berenamed Presteigne Charter. The acquisition is expected to be immediatelyearnings enhancing. Charter Broadcast has a strong reputation for its technical expertise and enjoyslong-standing relationships within the television industry. The acquisition willenhance the Group's existing broadcast services activities in Europe and providea local presence in each of the Australian and Far Eastern markets. Charter Broadcast specialises in the provision of custom-built and servicedtelevision broadcast equipment systems and digital radio camera systems, as wellas individual equipment items, to television production companies andbroadcasters. Charter Broadcast has supplied broadcast equipment and relatedservices to many of the world's top entertainment and sporting events includingthe Olympics; the Football, Rugby and Cricket World Cups; the Australian, Frenchand US Tennis Opens; Oxford and Cambridge Boat Race; and the television series"I'm A Celebrity Get Me Out of Here" and "Springwatch". Originally formed in 1989, Charter Broadcast is headquartered in Borehamwood,UK, and operates additional full service offices in Australia and Singapore. Incalendar year 2007, the Charter Broadcast group achieved an unauditedconsolidated operating loss of £0.5m on aggregate revenues of £9.1m. As at 31December 2007, the Charter Broadcast Group had unaudited assets of £8.4m. Thecyclical nature of the major sporting events broadcast market means that CharterBroadcast typically achieves higher turnover in even years versus odd years. The Avesco Group expects to announce its interim results for the six months to31 March 2008 in late June. A full update on trading will be given at that pointbut the Board believes that the Group's financial performance for the full yearwill be in line with market expectations. Commenting on the acquisition, Ian Martin, CEO of Avesco, said; "Our primary focus continues to be on the organic development of the Group andto maximise the potential of our businesses. That said, the general economicuncertainty has seemingly reduced valuations of businesses to a level thatcreates opportunities for acquisitions to add value to the Group. CharterBroadcast is such an opportunity. "The Charter Broadcast Group has a strong market reputation that will benefitfrom being consolidated within Avesco. The new Presteigne Charter operation willbe able to offer a wider range of products and services to more customers. Weare excited by the acquisition of Charter Broadcast and the potential itcreates." Enquiries: Avesco Group plc 01293 583400Ian Martin (Chief Executive)John Christmas (Finance Director) FinnCap 020 7600 1658Clive Carver/Charles Cunningham Weber Shandwick Financial 020 7067 0700Terry Garrett /John Moriarty This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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