REG-Glen Group PLC Acquisition
Released: 30/06/2008
com:20080630:Rnsd8079X
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RNS Number : 8079X
Glen Group PLC
30 June 2008
Glen Group plc ("Glen" or "the Company")
Acquisition of Colloquium Limited ("Colloquium")
Glen Group plc, the Edinburgh based provider of integrated telecommunications
solutions aimed at the SME market, is pleased to announce that it has acquired
the entire issued share capital of Colloquium, a public telecommunications
operator and Internet Service Provider ("ISP") based in Paisley, near Glasgow,
through its subsidiary Pinnacle Telecom plc ("Pinnacle").
The acquisition of Colloquium was for a total consideration of £100,000
satisfied in cash from existing Company funds.
Colloquium has its own telecom switch and provides telecommunications voice and
data solutions, including call provision and line rental, to SME customers. It
has interconnect arrangements with BT, Virgin Media and THUS. As a registered
public telecommunications operator, Colloquium has access to its own telephone
number ranges, both geographic and non-geographic (such as 0845), allocated by
OFCOM, and is able to port fixed line numbers to and from BT. This gives
Colloquium more freedom in the market and will allow Pinnacle greater
flexibility to provide a broader cost effective telecommunications solution to
its customers. Colloquium is also an ISP, one of the oldest in Scotland, having
first been established in 1995. It provides a full range of ISP services to the
SME market. These services include the provision of broadband, hosting services,
domain name registration and web design and implementation. It has also
developed its own broadband voice ("VoIP") platform routing telephone calls over
the internet onto Cisco and other vendor handsets.
The services provided by Colloquium are highly complementary to the focus of
Pinnacle. Operating its own telecom switch gives Colloquium pricing which, at
least for certain types of calls, can be more competitive than is available to a
switchless reseller. With approximately 325 customers, Colloquium also provides
Pinnacle with the opportunity to cross sell its other telecom solutions, such as
mobile.
Below are the results of Colloquium for the year ended 28th February 2008 taken
from the unaudited management accounts for that year. The unaudited figures for
the year to 28th February 2007 are taken from the unaudited statutory accounts.
The statutory accounts are prepared under UK GAAP.
INCOME STATEMENT Year ended Year ended
28th February 2008 28th February 2007
£ £
Turnover:
Products and services 518,292 485,554
Cost of Sales:
Direct costs, including support salaries (413,432) (399,455)
Gross Profit 104,860 86,099
Overheads excluding depreciation (80,301) (76,020)
Depreciation (21,843) (22,989)
Operating Profit/(loss) 2,716 (12,910)
Interest (net) 1,578 1,278
Profit/(loss) before taxation 4,294 (11,632)
Taxation 0 0
Profit /(loss) retained 4,294 (11,632)
EBITDA 24,559 10,079
At completion, one of the two executive directors of Colloquium will have left
the business but will continue as a part-time consultant for a limited period.
Had the 2008 results reflected the resultant cost reduction and other known
adjustments being made post completion, EBITDA would have been not less than
£50,000. The price paid for the business is therefore approximately two times
adjusted historic EBITDA without recognising any other cost benefits to the
wider Pinnacle Group.
Colloquium has no bank debt and has, historically, operated with free cash flow.
The balance sheets below are taken from the unaudited management accounts as at
28th February 2008. The unaudited figures as at 28th February 2007 are taken
from the unaudited statutory accounts.
BALANCE SHEET 28th February 2008 28th February 2007
£ £
Fixed Assets 86,606 97,406
Current Assets
Inventories and work in progress 25,023 45,007
Trade and other receivables 49,000 13,760
Cash and cash equivalents 9,824 51,064
Total Current Assets 83,847 109,831
Total assets 170,453 207,237
Current Liabilities
Trade and other payables 59,823 97,798
Other taxes and social security 12,852 11,064
Accruals and other payables 4,187 9,078
Total Current Liabilities 76,862 117,940
Total Liabilities 76,862 117,940
NET ASSETS 93,591 89,297
Represented by:
Share capital 209,033 209,033
Share premium 27,088 27,088
Reserves 97,561 97,561
Profit and loss (240,091) (244,385)
SHAREHOLDERS' EQUITY 93,591 89,297
Commenting today Alan J Bonner, Chief Executive of Glen Group plc, said:
"This is the first acquisition we have completed since announcing recent changes
to our structure and focus. The acquisition of Colloquium delivers valuable
expertise, customers, cash flow and cross selling opportunities together with
the enhanced status of a public telecommunications operator, all at a modest
cost and we look forward to quickly integrating this business into the Pinnacle
structure. Going forward, we will continue to seek further acquisition
opportunities that can add value to our business."
30 June 2008
Enquiries:
Glen Group plc
Alan J Bonner, Chief Executive Tel: 0845 119 2100
Pelham PR
Alex Walters Tel: 02031707435
Seymour Pierce
Jonathan Wright Tel: 02071078000
This information is provided by RNS
The company news service from the London Stock Exchange
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