4th Apr 2008 07:01
Spice PLC04 April 2008 4 April 2008 Spice plc Acquisition of Energy 2000 Marketing Limited Spice plc ("Spice" or "the Group"), the provider of total utility supportservices, is pleased to announce the acquisition of Energy 2000 MarketingLimited ("Energy 2000"). Following the acquisition, Energy 2000 will form partof our Energy Services business. The acquisition of Energy 2000 is for an initial cash consideration of £2.25million. Additional contingent consideration will be payable based on Energy2000's results for the year ending 30 April 2009. The additional contingentconsideration will be capped at £3.25 million. The initial consideration is subject to adjustment based on the working capitalat completion following the production and agreement of completion accounts. Thetotal consideration payable (including the initial consideration, the additionalcontingent consideration and the working capital adjustment) is capped at £5.75million. The unaudited financial statements for the 12 months to 31 October 2007 (itscurrent year end) showed turnover of £1.12 million and adjusted operatingprofits of £0.2 million. Net assets at 31 October 2007 were £0.3 million.Following the acquisition, Energy 2000's year end will be changed to April, inline with Spice's. It is estimated that Energy 2000's results for the year to30 April 2008 will show turnover of £1.2 million and adjusted operating profitsof £0.4 million so that the initial consideration would represent a multiple of6.2 times operating profit. Energy 2000, based in Lytham, is a commercial energy broker. It acts as agentfor industrial and commercial customers to procure gas and electricity fromsuppliers; additionally, it provides consultancy services advising its customerson various energy related matters including measuring and reducing their carbonfootprint and dealing with the climate change levy. It employs 19 people. It was established in 1989 by its directors, Neil Williams and Peter Whitesideboth of whom will be remaining with the business following the acquisitions. Simon Rigby, Chief Executive Officer of Spice, said: "The acquisition of Energy 2000 continues our expansion in the energy managementsector. The business is well known to us being based in the same town as ourexisting business, with a common heritage and brings with it additionalconsultancy skills as well as energy procurement. The skill base within ourEnergy Services business will benefit from the addition of these extraconsultancy skills". Neil Williams, Director of Energy 2000 said: "We are delighted to be joining the Spice group. We have been discussing thisfor some time and we believe that, as part of Spice, our business will be ableto continue to grow and enable us to offer a wider range of services to ourcustomer base". Ends Enquiries: Spice plc Tel: 0113 384 3838Simon Rigby, Chief Executive OfficerOliver Lightowlers, Group Finance DirectorAndrew Catchpole, Strategy and Development Director Financial Dynamics Tel: 020 7831 3113Billy CleggCaroline Stewart KBC Peel Hunt Tel: 020 7418 8900Julian Blunt NOTES TO EDITORS Spice plc Spice is a total utility infrastructure support services business. The Group'soperations were founded in 1996 and have their origins in the electricityindustry, though the range of activities has since been expanded into the watersector, niche telecommunications services, statutory gas inspections, energymanagement and facilities management. Spice's businesses have a common theme ofdelivering and co-ordinating infrastructure services to customers, and thetechnological element within the product mix has been built up significantlyover the course of the last three years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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