5th Sep 2006 07:02
Cello Group plc05 September 2006 5 September 2006 CELLO INVESTS IN DIGITAL AGENCY Cello Group plc ("Cello", AIM: CLL), the research and data led marketingservices group, has taken a controlling stake in Blonde Digital Ltd ("Blonde"),a newly created digital agency, based in Edinburgh. The new agency provide a one-stop shop for clients, offering digital consultancyand strategy, marketing & design, technical build, security and hosting. Theinitial focus will be to offer digital services to existing Leith and Navigatorclients, as part of an integrated campaign approach. The Managing Director ofBlonde is Pete Burns, formerly Digital Creative Director of Navy Blue DesignGroup. Cello has acquired 84% of Blonde for a nominal sum; with key management holdingthe remaining 16%. The management equity is subject to a put option on Cello,dependent on future performance, and is subject to a maximum consideration of£1.5 million in a mixture of cash and new ordinary shares. The percentage of anyconsideration payable in Cello new ordinary shares is at Cello's solediscretion. Cello has also agreed to provide initial working capital to Blonde in the formof a loan facility totalling £150,000. Separately today Cello has published its interim results for the six months to30 June 2006 which show that the Group increased profits by 98% to £2.62million. Mark Scott, Cello Chief Executive, said: ""We are committed to building on our already strong on-line credentials. PeteBurns and team will be a real asset to the Group as we accelerate down thedigital highway." Enquiries: Cello Group plc (www.cellogroup.co.uk)Mark Scott, Chief Executive 020 7812 8463Mark Bentley, Group Finance Director College HillAdrian Duffield/Ben Way 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CLL.L