3rd Apr 2008 07:00
Opsec Security Group PLC03 April 2008 3rd April 2008 OpSec Security Group plc ("OpSec" or "the Company") Pre closing trading update and acquisition of Light Impressions International Limited Prior to entering its close period for the year ending 31st March 2008 OpSecSecurity Group plc, the supplier of anti-counterfeiting technologies andservices, releases today the following pre closing trading update. Despite the translation effect of the weak American dollar and the absorption ofthe cost of aborted acquisitions, the Board believes that results for the yearended 31st March 2008 will be only marginally below market expectations. Groupturnover remained flat as the benefit of new customer contracts was offset bythe return to more normal levels of trading on the new contracts secured in theprevious financial year. Savings on overheads and a higher than expectedcontribution from 3dcd largely offset the impact of a higher depreciation chargearising from the recently completed major capital investment programmes and asmall decline in margins resulting from some changes in product mix. The Board is pleased to announce that it has completed the acquisition of LightImpressions International Limited. ("Light Impressions"). The purchase priceconsists of an upfront cash payment of £2.0 million and a two year cash earn-outcapped at £4.5 million , in addition to which OpSec will pay in cash on a poundfor pound basis for the amount by which Light Impressions' cash balances atcompletion exceed its immediate requirements. The two-year earn-out is to becalculated by reference to the turnover and gross margin achieved on keycustomer accounts during that period. The purchase price will be paid out ofexisting cash balances and bank facilities. Key employees from Light Impressionshave agreed to stay with the business post the acquisition to help ensure asmooth transition and the early realisation of significant integration benefits. Light Impressions is a provider of holographic products to approximately 80customers globally with a particularly strong presence in Asia. It creates itsown holographic images and sources products from other holographic manufacturersbut does not manufacture in its own right. Light Impressions currently has 7employees based in Leatherhead. In its annual report for the year ending 30thAugust 2007 Light Impressions reported turnover of £5.0 million, profit beforetaxation of £0.6 million and net assets of £1.5 million. Commenting on the acquisition Mark Turnage, Chief Executive Officer, said: "The team at Light Impressions has done an excellent job of building strongcustomer relationships and the acquisition of this company will give ourEuropean operations a significant presence in the Asian market. We expect thetransaction to be earnings enhancing immediately and of significant benefit tothe Group in future years." - ends - Enquiries: OpSec Security Group plc: 0191 417 5434Mike Angus, Finance Director:Mark Turnage, Chief Executive Oriel Securities Limited: 0207 710 7600Andrew Edwards/Neil Langford Weber Shandwick Financial: 020 7067 0700Nick Oborne/Stephanie Badjonat/Charlie Hooper This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
OSG.L