1st Sep 2005 07:17
hotgroup (The) PLC01 September 2005 PRESS RELEASE 1 September 2005 HOTGROUP TO BE ACQUIRED BY TRINITY MIRROR CREATING A POWERFUL NEW FORCE IN UK RECRUITMENT The hotgroup plc ("the hotgroup" or "the Company") is delighted to announce thatsubject to certain conditions, Trinity Mirror plc has agreed terms on which itwill offer to acquire the entire issued share capital of recruitment specialistthe hotgroup in a cash deal. The offer price is 20.25 pence per share, valuingthe hotgroup at approximately £50.5 million. The deal will bring together one ofthe UK's leading recruitment groups and one the UK's largest media organisationsto create a powerful new force in recruitment. The hotgroup's strategy of combining an online and traditional recruitment modelhas proved successful since its launch in 1999. The Company achieved itsposition of strength through making fourteen acquisitions since launch,including ten in the last 16 months and notably Workthing.com from the GuardianMedia Group in September 2004, driving profits growth. Online profitability wasup over 80% in the last six months of 2004 and group profits overall at the lastset of interim results were up steeply to £2.728m (before goodwill amortisation,exceptional items, interest and taxation), compared to a loss of £0.398m in theyear ended 31 August 2003. The hotgroup's position of strength has clearly made it an attractive target tomajor players in the industry and media players such as Trinity Mirror, as itremained the only significant online player outside of media group ownership. The offer price of 20.25 pence is highly beneficial to shareholders,representing a significant premium to the price prior to announcing an approachhad been received. This represents a premium of 72.3% over the closing price ofthe Company on 21 June 2005 of 11.75 pence. The hotgroup founder Harvey Sinclair, Managing Director Online and ChrisHerrmannsen, Managing Director Recruitment Consultancy, will remain with thehotgroup as it will be run as a separate company within Trinity Mirror. TonyReeves will remain as Chairman while the company is integrated into the TrinityMirror Group. Commenting, Tony Reeves, Chairman of the hotgroup said: "Today's acquisition of the hotgroup by Trinity Mirror is the culmination ofyears of building the Company into a leading UK recruitment firm. The hotgroupwill now benefit from the enhanced financial strength of Trinity Mirror, andemployees from their drive and vision for bringing new technology and mediasolutions to the recruitment industry. Shareholders will benefit from thishighly favourable cash offer. "I feel very proud of what everyone at the hotgroup has achieved together overthe last few years and I am excited about what the hotgroup will offer in thefuture." Press Enquiries: Tony Reeves (020) 7000 9994the hotgroup PLC James Hogan / Rachel Quigley (020) 7404 5959Brunswick Group LLP Notes to editors: About the hotgroup plc • Listed on AIM (HOT.L), the hotgroup plc is a unique technology-led recruitment company combining online and traditional recruitment solutions • The company is led by Tony Reeves, formerly CEO of the Delphi Group & co- founder of Office Angels. Harvey Sinclair is Managing Director of the online business, Chris Herrmannsen, Managing Director of the recruitment consultancy business, and Steve Wright, Chief Financial Officer • Company head office is based at Kensington Village, London, W14 8TS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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