Acquisition

5th Sep 2005 13:25

Judges Capital PLC05 September 2005 5 September 2005 Judges Capital plc ("Judges Capital" or the "Company") Judges Capital acquires controlling interest in PE fiberoptics Ltd The Directors of Judges Capital announce that, on 2 September 2005, the Companycompleted the acquisition of a controlling interest in PE fiberoptics Ltd ("PEf"), a Management Buy Out ("MBO") vehicle that will specialise in the designand manufacture of instruments used to test fibreoptic telecommunicationscables. PEf is a private company newly established to effect the acquisition from a USmultinational corporation (the "Vendor") of the business, assets and goodwill ofa fibreoptic test equipment operation based in Wokingham, Berkshire forUS$100,000. Judges Capital has invested a nominal sum in exchange for 51% of PEf's equityand is providing loan and working capital commitments of £291,000 (of which£250,000 is secured) from the Company's existing resources. The interests of thekey management team participating in the MBO and providing further loans of£28,000 amount to 35%. The balance of 14% of PEf's equity is held by the Vendor. The operation generated turnover of £1.1million and an unaudited loss beforeinterest, tax, depreciation, amortisation, rent, pensions and corporate charges("Adjusted Ebitda") of £1 million for the year ended 31 December 2004. Theoperation achieved historic sales of $22 million and unaudited Adjusted Ebitdaof $11 million for the year ended 31 December 2001 as a result of the 'dot com'exuberance but subsequently experienced a drastic downturn in revenues in linewith its technology related client base. The operation was closed by the Vendorin June 2005. The net assets purchased had a value of around £1.5 million in thebooks of the Vendor. David Cicurel, Chief Executive of Judges Capital, commented: "We are delighted to have reached agreement with the ongoing management team inrelation to the MBO of PE fiberoptics. As stated at the time of our acquisitionof Fire Testing Technology earlier this year, the Board of Judges Capital hasidentified instrumentation and testing as an area that the Directors believeoffers significant potential for growth and enhanced shareholder returns. Wehave every confidence that, in partnership with PE fiberoptic's experiencedmanagement team, led by Ian Mackenzie, Managing Director, we will succeed inpositioning the company to take full advantage of opportunities and therebycapitalise on the acknowledged expertise inherent in the business." Ends For further information please contact: David Cicurel, Chief Executive, Judges Capital: Tel: 07771 893 080Alex Borrelli, Shore Capital & Corporate: Tel: 020 7408 4090Melvyn Marckus, Cardew Group: Tel: 0207 930 0777 This information is provided by RNS The company news service from the London Stock Exchange

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