1st Apr 2005 07:01
Eckoh Technologies PLC01 April 2005 For immediate release 1 April 2005 Eckoh Technologies plc ("Eckoh" or the "Company") Acquisition of Anglia Telecom Centres Limited Eckoh, one of Europe's leading speech application service providers, todayannounces that its wholly-owned subsidiary Symphony Telecom Holdings plc ("STH")has exchanged contracts for the purchase of Anglia Telecom Centres Limited ("Anglia") from TTG Europe plc for cash consideration of up to £10.0 million. Thecompletion of this acquisition is conditional on STH securing senior bank debtfinancing in the amount of £6.0 million within the next 30 days. The balance ofthe purchase price is expected to be met from existing Eckoh cash reserves andis subject to the closing net asset position of Anglia on completion. Anglia was incorporated in 1987 and is a successful mobile distribution andfixed line reseller to the SME market in the UK. Anglia supplies a range ofmobile network connection packages, mobile phone handsets and accessoriesthrough a network of over 170 mobile phone dealers in the UK. The businesssupports the dealer network through providing marketing expertise, sourcing thehardware and arranging for the connection of the dealers' customers to thedesired network. To provide these connection services Anglia has directconnection agreements with five mobile phone networks, being O2, Orange,T-mobile, Hutchinson 3G and Vodafone. In addition, Anglia acts as a switchlessreseller of fixed line telecommunications services, providing such services toover 1,000 business customers. Revenues for the last audited financial yearended 31 March 2004 were £22.4 million and profit before taxation of £1.7million. Following completion, Anglia will operate alongside STH's existing fixed lineand mobile services subsidiary Symphony Telecom Limited ("Symphony"). On acombined basis Anglia and Symphony will generate unaudited annualised revenuesin excess of £48.0 million and unaudited profits before taxation ofapproximately £2.4 million. The Board of Eckoh is of the opinion that byacquiring Anglia efficiencies can be achieved and margins increased within thetwo businesses, increasing profitability within STH. In addition, Symphony hasapproximately £10.0 million of tax trading losses which it can carry forward tooffset against future taxable profits. Together with its nominated advisor, Evolution Securities Limited, the Board ofEckoh is also conducting a strategic review of the Company, with the objectiveof demonstrating the value of Eckoh's constituent business activities, which itbelieves may not be reflected in Eckoh's current share price. The Companyexpects to make further announcements as appropriate. Eckoh's current trading performance is in line with market expectations andexpects to report increased profits before tax (excluding goodwill amortisation)of at least £600,000 for the six months ending 31 March 2005, despite sufferinga bad debt write off of £200,000 in respect of Auctionworld during this period. For further enquiries, please contact Eckoh Technologies plc Tel: 08701 100 700Martin Turner, Chief ExecutiveNik Philpot, Chief Operating Officer Buchanan Communications Tel: 020 7466 5000Mark Edwards/Jeremy Garcia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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