7th Apr 2008 07:01
Spice PLC07 April 2008 7 April 2008 Spice plc Acquisitions of Melton Power Services, Utility Technology Limited, and Line Design Solutions Limited and GIS Direct Limited Spice plc ("Spice" or the "Group") is pleased to announce the completion of fouracquisitions, Melton Power Services ("Melton"), Utility Technology Limited ("UTEC"), and Line Design Solutions Limited ("LDS") and GIS Direct Limited ("GIS"), by its Electricity Services business. Details of these acquisitions are setout below. Melton Power Services Melton has been acquired for an initial consideration of £2.5 million paid incash at completion. Additional contingent cash consideration of up to £2.0million will become payable depending on the results of Melton for the yearsending 30 April 2009 and 30 April 2010 respectively. The total considerationpayable (including the initial consideration and the additional contingent cashconsideration) is capped at £4.5 million. Melton installs and maintains private power networks for commercial andindustrial clients across the United Kingdom. As well as planned maintenanceservices provided for under maintenance agreements, Melton carries out remedialand asset replacement work on its customers' networks (such as transformer oilchanges and switchgear changes) and additional work to expand or reinforce thosenetworks. Melton was established in 1990 and both of its founding partners (Steve Thompsonand Bernie Gackowski) will remain with the business following the acquisition.Melton is based in Melton Mowbray, Leicestershire. The accounts of Melton for the year ended 31 May 2007 show turnover of £1.2million and adjusted operating profits of £0.5 million. Net assets at 31 May2007 were £0.6 million. The initial cash consideration of £2.5 millionrepresents a multiple of 5.0 times adjusted 2007 operating profits. Utility Technology Limited UTEC has been acquired for an initial consideration of £0.1 million paid in cashat completion. Additional contingent cash consideration of up to £0.1 millionwill become payable depending on the results of UTEC for the year ended 31 March2008 and its working capital position at that date. The total considerationpayable (including the initial consideration, the additional contingent cashconsideration and the working capital adjustment) is capped at £0.2 million. UTEC provides condition surveying and monitoring services on overheadelectricity circuits and assets to Distribution Network Operators including linecondition reporting and pole inspection activities. The business was founded in1987 and is located in Cambridgeshire. The acquisition of UTEC provides Freedomwith cradle to grave capabilities for overhead line design and project works. The accounts of UTEC for the year ended 31 March 2007 show turnover of £0.5million and operating profits of £0.03 million. Net assets at 31 March 2007 were£0.03 million. The initial cash consideration of £0.1 million represents amultiple of 3 times 2007 operating profits. Line Design Solutions Limited and GIS Direct Limited LDS and GIS have been acquired from common owners for consideration of £0.1million paid in cash at completion. LDS and GIS both provide overhead line consultancy and technical services toDistribution Network Operators throughout the UK. The business is located inFlintshire. The accounts of LDS and GIS for the year ended 31 March 2007 show turnover of£0.1 million and operating profit of £0.02 million. Net assets at 31 March 2007were £0.01 million. The initial cash consideration of £0.1 million represents amultiple of 5 times 2007 operating profits. Simon Rigby, Chief Executive Officer of Spice, said: "The acquisitions of Melton, UTEC, LDS and GIS significantly strengthen ourFreedom business and reinforce our position as one of the leading players in theUK electricity sector. Each of these businesses bring with them blue chip clientbases, which complement our own, and strengthen our capabilities in the area ofprivate network maintenance and refurbishment and also overheads lines. We remain very well placed for growth within our Electricity business." Ends For further information, please contact: Spice plc Tel: 0113 201 2120 Simon Rigby, Chief Executive OfficerOliver Lightowlers, Group Finance DirectorAndrew Catchpole, Strategy and Development Director Financial Dynamics Tel: 020 7831 3113 Billy CleggCaroline Stewart KBC Peel Hunt Tel: 020 7418 8900 Julian Blunt NOTES TO EDITORS Spice plc Spice is a total utility infrastructure support services business. The Group'soperations were founded in 1996 and have their origins in the electricityindustry, though the range of activities has since been expanded into the watersector, niche telecommunications services, statutory gas inspections, energymanagement and facilities management. Spice's businesses have a common theme ofdelivering and co-ordinating infrastructure services to customers, and thetechnological element within the product mix has been built up significantlyover the course of the last three years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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