Acquisition

2nd Feb 2007 07:01

Vitesse Media PLC02 February 2007 VITESSE MEDIA PLC - ACQUISITION, PLACING OF SHARES, TRADING UPATE AND DIRECTORSHAREHOLDING Vitesse Media plc, the specialist multi media business (online, events andprint) focusing on the entrepreneurial sectors and its investors, todayannounced the acquisition of What Investment magazine, its associated web sitewww.whatinvestment.co.uk, and a quarterly supplement What Investment Trust alongwith certain other assets from Charterhouse Communications plc for a net cashpayment of £500,000. Five employees will be transferred to Vitesse Media withthe assets. What Investment is a monthly newsstand magazine with an ABC audited circulationof over 21,000, of which around 17,000 are subscribers. The title and its website offer synergies and a marketing platform for one of our leading brandsGrowth Company Investor and an opportunity to develop the online presence andnew events. Unaudited figures which have been taken from the results for theyear ending 31 May 2006, and which are attributable to these assets showrevenues of £895,000 and gross profit of £106,000. The net cash payment of £500,000 is made up of a cash consideration of £626,000with a refund of £126,000 of prepaid subscriptions by the vendor. The payment isbeing funded by a placing of 2,787,500 ordinary shares in the company at 20p toraise £557,500 before expenses (the "Placing"), plus an increase in bankfacilities. Application has been made for admission of the new ordinary sharesto trading on AIM and dealings in the new ordinary shares issued under thePlacing are expected to commence at 8.00am on 6 February 2007. The Acquisitionand the Placing are both subject to the placing shares being admitted to tradingon AIM.tAs part of the Placing Andrew Brode, a non-executive director in the Company,will subscribe for 500,000 shares at 20 pence per share. Following this Andrewwill have a shareholding of 550,000 ordinary shares representing 2.63% of theissued share capital of the Company. Vitesse Media's trading continues in line with the statement accompanying theinterim results in September, showing a reduction in losses. For the full yearto 31 January, revenues are expected to be between £3.1 and £3.2 million andlosses are expected to reduce to around £350,000 (before one-off costs due tooffice move). Commenting on the acquisition, Sara Williams, Chairman of Vitesse Media plc,said: "We are delighted to add What Investment and www.whatinvestment.co.uk toour stable of titles. The purchase will increase our marketing reach for othertitles and events, as well as providing us with a wonderful opportunity todevelop new events." For further information please contact: Vitesse Media plc 020 7250 7010Sara WilliamsKym Kingwill KBC Peel Hunt 0207 972 8900Patrick Booth-ClibbornGordon Suggett This information is provided by RNS The company news service from the London Stock Exchange

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Related Shares:

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