10th Nov 2005 08:00
Newcourt Group plc10 November 2005 NEWCOURT GROUP PLC ("Newcourt" or "the Group") Admission to AIM and IEX Today marks the first day of dealings for Newcourt on the AIM and IEX markets.Newcourt operates in the outsourced services sector in Ireland, initially in twoareas, through Federal Group ("Federal") in security services and Sigmar Group("Sigmar") in recruitment and staffing solutions. The Group is growing rapidlythrough a combination of organic growth and bolt on acquisitions. Approximately €14.4 million (before expenses) has been raised on behalf ofNewcourt and certain of its shareholders. The offering was more than three timesoversubscribed at the placing price of 70c per share giving Newcourt a marketvalue of approximately €48m. Davy Corporate Finance advised the Group on itsflotation. Newcourt was established in 2002 with the support of institutional and privateinvestors and has grown by acquisition and organic development since that time.Federal is now one of the leading security providers in Ireland and Sigmar holdsa strong position in the Irish recruitment market. Turnover at Newcourt for thesix months to 30 June, 2005 was €25m and EBITDA €2.37m. The Group is forecastingturnover of over €60m and EBITDA of over €5m for the year to 31 December, 2005. Newcourt has an experienced management team under the leadership of ChiefExecutive, Ted O'Neill. Executive Directors Hugh O'Neill and John Barryrespectively head up Federal Group and Sigmar. Non-executive Directors are JamesOsborne, Chairman, Phil Sykes and Philip Cunningham. Federal has achieved critical mass in the Irish security industry with 1,700staff and offices in Dublin, Cork and Lisburn. It provides manned guarding,remote monitoring and electronic security services to the industrial, retail,financial and healthcare sectors. The industry in Ireland is fragmented and theplanned introduction of security licensing is likely to lead to consolidation.The market is also growing due to increasing levels of outsourcing. Federal seesexpansion opportunities from existing and new clients, development in electronicsolutions, cross selling ancillary services and acquisitions. Sigmar has a strongly growing presence in the buoyant Irish recruitment market.Sigmar has an experienced management team with a proven track record. The teamis well established in areas such as sales and marketing, finance, legal andoffice staff. The performance of the Irish economy has ensured continued stronggrowth in the market. Sigmar has offices in Dublin and Cork and will shortlyopen an office in Galway. Sigmar is also developing into the niche markets ofaviation staffing through the provision of pilots and crew, training of pilotsand executive search and selection. The recruitment sector is also fragmentedand Sigmar sees opportunities for organic and acquisition led growth in thesector Ted O'Neill was formerly the founder and chief executive of IMARI Group, a portservices and transport group based in Ireland which was sold in 2000 to MerseyDocks & Harbour Company. He subsequently joined the executive board of thatcompany. He was also a shareholder and non-executive director of Seafield plc,which was sold in 2001. He is chairman of Norish plc and is a Fellow of theInstitute of Chartered Accountants in Ireland. Hugh O'Neill, managing director of Federal, joined Newcourt in 2003 havingpreviously been chief executive of Freightwatch Group Ltd, a companyspecialising in the provision of global risk management solutions to prevent thetheft of high value product, particularly while in transit. He is a formercaptain in the defence forces and served with the United Nations in the MiddleEast. He is a graduate in economics and holds an MBS. John Barry, managing director of Sigmar, was formerly with PARC Aviationspecialising in recruitment and selection in international aviation. He was adirector of the executive search and recruitment division of BDO Simpson Xavierand former managing director of Walker Hamill. He was a commandant in thedefence forces and had responsibility for recruitment and selection services. Heis a business studies graduate and holds an MBA and an MSc in human resourcemanagement. Commenting on the successful fundraising today, Ted O'Neill, Chief Executivesaid: "We are delighted with the successful outcome of this offering which marksthe start of the next phase in the development of Newcourt. Newcourt is anestablished and profitable business with a growing revenue stream and blue chipclients. Our objective is to develop into a broadly based outsourcing andsupport services group focussed initially on the island of Ireland. We believewe have positioned the company in a sector with above average growth potential.The business is expected to benefit from continued growth in the Irish economyand the growth of outsourcing generally in Ireland. Flotation will give usaccess to capital markets to support the Group's development strategy." For further information please contact: Newcourt Group plc Ted O'Neill, Group Chief Executive Tel: + 353 1 637 3900 Davy Corporate Finance Limited Ivan Murphy, Director Brian Corr Tel: + 353 1 679 6363 Murray Consultants Joe Murray Tel: + 353 1 498 0300 or + 353 (0) 86 253 4950 10 November, 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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