8th Jun 2007 07:01
Cello Group plc08 June 2007 8 June 2007 Cello Group plc Cello extends its public sector research practice with the acquisition of mrukresearch Cello Group plc ("Cello", AIM: CLL), the market research and consulting grouphas acquired Market Research International Limited ("mruk research"), aspecialist public sector market research consultancy. Initial considerationconsists of approximately £1.5 million with further performance relatedconsideration of up to a maximum of £4.5 million. mruk research, which was established in 1994, has a track record with manyregional and national public sector organisations including The MetropolitanPolice Service, Yorkshire Water, GMPTE, Scottish Executive and the WelshAssembly. In addition mruk research acts for numerous Government Agencies, LocalAuthorities, Police Authorities, Regional Development Agencies, RegisteredSocial Landlords and Utilities. The initial consideration consists of approximately £1.5 million of which £0.75million is payable in cash and the balance satisfied by the issue of 506,757 newordinary shares. In addition, there are further performance related paymentsover the period to 31 December 2010. These further payments are in a mixture ofloan notes and new ordinary shares at Cello's discretion, with a minimum overallloan note consideration of 50% of the further consideration. For the year to 30 June 2006, mruk research had a turnover of £4.4 million,audited profits before tax of £0.3 million. Net assets as at 30 June 2006 were£0.6 million including cash of £0.4 million. Application has been made to the London Stock Exchange for the new shares to beadmitted to AIM and it is expected that admission will take place by 13 June2007. Kevin Steeds, Cello Chairman, said: "mruk research has an excellent reputation particularly in the public sectorresearch market. The addition of this very complementary business will both addscale and accelerate the growth of our existing public sector practice." Enquiries: Cello GroupKevin Steeds, Executive Chairman 020 7812 8460 College HillAdrian Duffield/Ben Way 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello is a market research and consulting group that listed on AIM in November2004. The Group's strategy is to create value for shareholders by building a portfolioof research and consulting businesses capable of advising blue chip clientsglobally. Cello has annualised turnover in excess of £80million, gross profits of over £50million and employs approx 550 professional staff. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CLL.L