7th Oct 2005 07:00
Multi Group PLC07 October 2005 Date: 7 October 2005On behalf of: Multi Group Plc ("Multi" or "the Company")Embargoed until: 0700hrs Multi Group PlcAcquisition of 1st 4 Locums Limited The directors of Multi, the specialist recruitment group, are pleased toannounce that Multi has today acquired 1st 4 Locums Limited, a private companytrading as The Locum Partnership ("TLP"). TLP was founded in 2002 and supplies physiotherapists, occupational therapistsand pharmacists, principally to the NHS. The company has 6 fee-earningconsultants based in its office in Ilford and over 400 NHS clients. Prior to its acquisition by Multi TLP had been run as a life style business andin the year to 30 April 2005, it reported an adjusted profit before taxation of£650,000 on turnover of £7.57 million. At 30 April 2005, TLP had net assets of£240,000 Multi has initially acquired 90 per cent. of TLP's issued share capital for aconsideration of up to £3.6 million, payable in two tranches. The firsttranche, paid on completion, amounted to £2.46 million and was satisfied as to£2.16 million in cash and £300,000 by the issue of 9,887,936 new ordinary sharesof 0.1 pence each in Multi (Ordinary Shares). Application has been made for the Ordinary Shares issued as part of the initialconsideration to be admitted to trading on AIM with effect from 12 October 2005. The second tranche, of up to £1.14 million, is linked to the attainment ofcertain agreed performance targets. This tranche will be payable upon signatureof the audited accounts of TLP for the year ended 30 April 2006 and will besatisfied by up to £440,000 in cash and up to £700,000 in Ordinary Shares at thethen market price. Multi has also been granted an option to acquire the remaining 10 per cent. ofTLP's issued share capital, which is currently held by the company's twodirectors, at any time prior to 6 October 2008 for a cash consideration to bedetermined by reference to a valuation of the business equivalent to eight timesits annualised post tax profits at the date upon which the option is exercised. Commenting on the acquisition Oliver Cooke Multi's Chairman said "We are particularly pleased with the acquisition of TLP as the businessoperates in a sector that is predominantly non cyclical in nature and wheredemand continues to outstrip supply. The business is also attractive because itis cash flow positive and generates above average levels of profitability." - ends - Enquiries to: Oliver Cooke, ChairmanMulti Group Plc Tel: 08701 602 901 William VandykCorporate Synergy Plc Tel: 020 7448 4400 Emma Kane/Miranda GoodRedleaf Communications Ltd Tel: 020 7955 1410 Notes to Editors: • Multi Group Plc's shares were admitted to trading on AIM in November 2003; • In August 2004, the Company disposed of the business and assets of its tool-hire division for a cash consideration of £7 million; • The Directors then identified the staffing and recruitment sector as being one in which they believed there are significant opportunities to develop the Group and by January 2005, Multi Group was an AIM listed cash shell with approximately £5.1m on deposit; • Significant shareholders include Bob Morton, Michael Jackson and Unicorn Asset Management; • In March 2005, Multi acquired Berry Recruitment Holdings Limited, a recruitment company with a fast-growing medical and care division, operating from eleven branches around the UK • In June 2005, Multi acquired Grays Personnel Limited, a general recruitment business whose four branches complimented and filled gaps in Berry's network • In September 2005, Diana Cornish, the former Executive Chairman of Blue Arrow, was appointed to Multi's Board as a non-executive director • Further information can be found on the Company's website http:/ /www.multiplc.com . This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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