29th Nov 2007 07:12
Spice PLC29 November 2007 29 November 2007 Spice plc Acquisition of Redbridge Management Services Limited Spice plc ("Spice" or "the Group"), the provider of total utility supportservices, is pleased to announce the acquisition of Redbridge ManagementServices Limited ("RMS"). RMS will be integrated into our Telecoms businesswithin our Utility Services Division. The acquisition of RMS is for an initial cash consideration of £3.1 million. Theprice paid represents a multiple of 6 times adjusted operating profit for theyear ended May 2007. Additional contingent cash consideration capped at £1million will be payable based on the performance of RMS over the twelve monthperiod ending 28 November 2008. The initial consideration is subject to a downwards adjustment only based on theworking capital at completion with a maximum downward adjustment of £0.25million becoming payable to Spice following the production and agreement ofcompletion accounts. There will be a cap on the maximum total considerationpayable, including contingent consideration, of £4.1 million. The audited financial statements of RMS for the year ended 31 May 2007 showturnover of £6.8 million and adjusted operating profits of £0.5 million. Netassets at 31 May 2007 were £0.8 million. RMS was established in April 2001 by its directors, Mark and Sarah Bruce. RMScurrently employs 68 people. In December 2006, RMS was voted 79th in the Timeslist of the top 100 fastest growing Fast-Track privately owned companies in theUK. RMS from its headquarters in Chepstow, provides UK wide engineeringinfrastructure support services such as 24/7 first line maintenance, networkmanagement, installation and commissioning and project management totelecommunications equipment manufacturers, telecommunications network operatorsand large corporate clients. Simon Rigby, Chief Executive Officer of Spice, said: "The acquisition of RMS strengthens our Telecoms Services division and meansthat our operational capability is now extended to provide comprehensive, UKwide, first line maintenance services which compliments our existing UK andEuropean footprint in Hutchison Team Telecom ("HTT"). We see the addition ofsome 58 qualified telecommunications engineers as a significant enhancement toour existing capabilities and a win, win for our combined client base includingthe BT21CN roll out". Mark Bruce, Managing Director of RMS said: "The opportunities for accelerated growth for RMS as a part of a much largerorganisation such as Spice was justification alone to do the deal, however Itruly believe that the synergies between RMS and HTT will bring real benefits toour combined customer base and allow the enlarged business to more readilycompete for larger pieces of the growing European telecoms outsourcing market". Ends Enquiries: Spice plc, Tel: 0113 384 3838 Simon Rigby, Chief Executive OfficerOliver Lightowlers, Group Finance DirectorCarl Chambers, Corporate Development Director Financial Dynamics, Tel: 020 7831 3113 Billy CleggCaroline Stewart KBC Peel Hunt, Tel: 020 7418 8900Julian Blunt NOTES TO EDITORS Spice plc Spice is a support services business operating in the Commercial Services,Public Services and Utility Services sectors. The Group's operations werefounded in 1996 and have their origins in the electricity industry, though therange of activities has since been expanded into the water sector, nichetelecommunications services, the public sector, energy management and commercialfacilities management. Spice's businesses have a common theme of delivering andco-ordinating infrastructure services to customers, and the technologicalelement within the product mix has been built up significantly over the courseof the last three years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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