7th Aug 2006 07:02
SMG PLC07 August 2006 SMG Launches Online Champion for Consumers The Board of SMG plc ("SMG") announces the launch of Peopleschampion.com - anexciting new online initiative that will offer consumers exhaustive pricecomparisons in the purchase of financial, utility, travel and other products.Peopleschampion.com is expected to generate significant consumer transactionsand revenues, drawing on the substantial promotional power of SMG's mediaassets: STV; Virgin Radio; Primesight and Pearl & Dean. Peopleschampion.com was conceived, and will be headed, by Jim Spowart, founderof Standard Life Bank and Intelligent Finance and a recognised innovator in thepersonal finance arena. Jim will oversee the launch of the concept, featurestrongly in editorial content giving consumers guidance on seeking value formoney and use his reputation and profile to market and promote the website. The Peopleschampion.com website will be powered by Moneysupermarket.com whichhas relationships with a large number of suppliers of products and has awell-established position in the UK intermediary online space. The business will generate income based on the number of users utilising the website'scomparison functions and it is expected to reach profitability early in itsfirst year. Peopleschampion.com represents an excellent fit with SMG's online strategy andwill be supported by SMG's other consumer-facing online businesses: stv.tv;virginradio.co.uk and pearlanddean.com. Commenting on the launch of Peopleschampion.com, Donald Emslie, Acting ChiefExecutive of SMG, said: "Peopleschampion.com is a fantastic business proposition and provides a greatopportunity to build on our very strong relationship with our viewers and helpthem save money. "This initiative fits SMG's digital strategy like a glove and will help usachieve our stated aim of generating more than 25% of broadcasting revenues from non-spot advertising by 2010." Jim Spowart said: "Put simply, we will be bringing consumers the best deals. This will save themsignificant amounts of money. My track record has been in offering peoplevalue-for-money products and Peopleschampion.com is the natural progression. We will be offering huge choice and showing people how they can move to a better deal in a wide range of products from credit cards, insurance, mortgages through to travel and energy supply. "This is the future and we know that the UK consumer has been waiting for thiseasy-to-use, one-stop shop." About Peopleschampion.com The internet-based business has been created by Jim Spowart and a series offinancial backers. Its aim is to become one of the UK's most trusted andrecognised price comparison websites offering genuine choice to the consumeracross a wide range or products. About Jim Spowart Jim is one of the UK's most successful entrepreneurial financial experts. Afterworking for many years with Royal Bank of Scotland, he helped Peter Wood set upDirect Line Financial Services. He was the founder of Standard Life Bank andIntelligent Finance, the innovative internet subsidiary of HBOS. Under Jim'sdirection, IF was able to capture nearly 8% of the UK's mortgage market. He hascreated more than 5,000 jobs across the UK. Details of the Transaction Peopleschampion.com Limited ("the Company"), a company which has not previouslytraded with gross assets valued at £2,060, as at 31 December 2005, owns thePeopleschampion.com website, trademark and associated intellectual property. SMG has, today, acquired an 80% holding and 100% of the voting rights in the Company from Jim Spowart, Kenneth Kemp, Ian McAteer, Mark Reid and Andrew Lindsay (together "the Founders") for an initial consideration of £250,000. The Founders retain a 20% holding in the Company and enhanced profitincentive arrangements in the initial period. A further £250,000 of deferred consideration is payable by SMG to the Founders in aggregate, subject to thesatisfaction of certain financial performance targets. The consideration is to be satisfied by the issue of loan notes by SMG to the Founders. SMG has granted to the Founders an option to require it to purchase theirshareholdings in the Company in January 2010 and January 2012 and the Foundershave granted to SMG an option to acquire their shareholdings in the Company onthe fifth anniversary of today's date. The purchase price for any sharesacquired pursuant to these options shall be based on a multiple of the Company's profits, subject to a cap of £15,000,000 in aggregate and subject toa minimum amount of: (i) £250,000 in aggregate in the event that the relevant profits of the Company exceed £500,000 but are less than £1,000,000; and (ii)to a minimum amount of £500,000 in the event that the relevant profits of theCompany are greater than or equal to £1,000,000. Ends 7 August 2006 Further enquiries: Callum Spreng Group Communications Director0141 300 3640SMG plc This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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