24th Aug 2007 07:00
Motivcom PLC24 August 2007 24 August 2007 Motivcom plc ("Motivcom" or "the Company") Acquisition of Motivation Travel Management Limited Motivcom plc (AIM:MCM), a leading marketing services company providing incentiveand motivation services to a range of UK and international clients, todayannounces that it completed the acquisition of Motivation Travel ManagementLimited ("MTM") on 23 August 2007. MTM is an agency which specialises in theprovision of incentive travel and conference facilities in the United Kingdomand overseas to corporate clients. It is the intention of Motivcom to merge MTM with its subsidiary Archer YoungLimited ("Archer Young") by 31 December 2007. Archer Young is also a providerof incentive travel and conference facilities, as well as a provider ofmotivation and performance improvement services. The newly formed company willbe re-branded AYMTM Limited ("AYMTM") and will be absorbed into Motivcom's P&MMIncentive Travel Conferences & Events division. It is anticipated that themerger of MTM and Archer Young will create cost savings and synergy benefitsthat will flow into the merged AYMTM business from as early as 1 January 2008. Motivcom has paid an initial cash consideration of £860,000 for the entireissued share capital of MTM. Additional deferred cash consideration of up to£640,000 is payable subject to AYMTM achieving specified levels of earningbefore interest and tax in the years ending 31 December 2008 and 2009. Thevendors will remain with the merged business. MTM had net liabilities of approximately £85,000 and a profit before tax ofapproximately £74,000 for the year ended 31 December 2006. It is anticipatedthat MTM will enhance Motivcom's earnings for the year ending 31 December 2008. Commenting on the acquisition, Nigel Cooper, Executive Director for Motivcom plcand responsible for the Company's Incentive Travel Conferences & Eventsdivision, said: "We are delighted to have successfully completed the acquisition of MTM. We areconfident that the strong synergies between MTM and Archer Young will lead to asignificantly enhanced offering of our provision of incentive travel andconference facilities. The acquisition demonstrates our commitment to rapidlygrowing the value of Motivcom and exploiting selective opportunities forconsolidation in an extremely fragmented market. "We look forward to realising significant growth opportunities for AYMTM goingforward." -Ends- For further information:Motivcom plcSue Hocken Tel: +44 (0) 1908 608 [email protected] www.motivcom.com Grant ThorntonPhilip Secrett/Fiona Owen Tel: +44 (0)207 383 [email protected]/[email protected] www.gtuk.com Media enquiries:AbchurchHeather Salmond/ Georgina Bonham Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Notes to Editors: Motivcom plc is a leading marketing services company in the business to employeesector providing incentive and motivation services to blue chip UK andinternational clients. Motivcom drives performance of direct and third partyemployees using motivation and incentive techniques for human capitalmanagement. The Company also has a fast growing consumer incentives business.Motivcom's core business divisions include: motivation and incentive programmes,incentive travel and events, employee benefits and sales promotion. Motivcom'sactivities in each sub-sector help to improve staff productivity, retention,absenteeism and increase product sales respectively. The management team has been in place since 2002. It follows a strong organicand acquisitive growth strategy. Motivcom's organic growth is driven byinvestments in innovative products such as the recently launched Spree-visacard. Since 2002, the Company has acquired Fotorama, Archer Young Ltd,Summersault Ltd, and The Voucher Shop all of which have been successfullyintegrated into the Company. Motivcom is constantly exploring new acquisitiontargets in existing and complementary areas to further strengthen the Company'sposition in the business to employee space. Motivcom plc is based in Milton Keynes. It listed on the AIM market of theLondon Stock Exchange in August 2004 under the name P&MM Group plc. P&MM Groupplc was re-branded Motivcom plc (AIM: MCM) in March 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MCM.L