13th Oct 2008 07:00
13 October 2008
Spice plc
Acquisition of Morrel Consulting Limited
Spice plc ("Spice" or "the Group"), the provider of Total Utility Support Services, is pleased to announce the completion of the acquisition of Morrel Consulting Limited ("Morrel").
Morrel provides specialist consultancy services to the water industry. In particular Morrel has developed a software application that:
assists in the identification of unbilled and under-billed commercial and domestic properties; and
analyses consumption data to identify leakage and under-recording meters.
Morrel is remunerated on a percentage basis contingent upon the amount of unrecorded revenue identified.
Morrel has been acquired for initial net cash consideration of £0.15 million. Additional contingent cash consideration of up to £5.07 million will become payable depending on the performance of Morrel for the two year period ending October 2009. The initial net cash consideration is subject to adjustment based on the net asset position at completion. The total consideration payable (including the initial net cash consideration, the additional contingent cash consideration and the net asset adjustment) is capped at £5.22 million.
Morrel was formed by Hargurdial Singh Rai, who will remain with the business following acquisition. The audited financial statements of Morrel for the year ended 31 January 2008 show turnover of £0.07 million and operating profits of £0.05 million. Net assets at 31 January 2008 were £0.01 million.
Simon Rigby, Chief Executive Officer of Spice, commented:
"The acquisition of Morrel significantly enhances our Distribution Division's water service offering and moves us further up the value chain. Through combining our nationwide network of operatives with Morrel's software application, we are in a strong position to assist our utility customers in maximising their revenue streams. Against the current uncertain economic climate, we believe that this is an ideal time to bring this innovative and value added solution to our clients. There are also strong synergies with the work currently being undertaken by our Supply Division."
…Ends…
For further information, please contact:
Spice plc - Tel: 0113 201 2120
Simon Rigby, Chief Executive Officer
Oliver Lightowlers, Group Finance Director
Andrew Catchpole, Group Strategy and Development Director
Financial Dynamics - Tel: 0207 831 3113
Billy Clegg
Caroline Stewart
KBC Peel Hunt - Tel: 0207 418 8900
Julian Blunt
NOTES TO EDITORS
Spice plc
Spice is a total utility infrastructure support services business. The Group's operations were founded in 1996 and have their origins in the electricity industry, though the range of activities has since been expanded into the water sector, niche telecommunications services, statutory gas inspections, energy management and facilities management. Spice's businesses have a common theme of delivering and co-ordinating infrastructure services to customers, and the technological element within the product mix has been built up significantly over the course of the last three years.
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