Audioboom Grp. Regulatory News (BOOM)

5 Nov 2007 07:01

Boomerang Plus PLC05 November 2007 Date: 5 November 2007On behalf of: Boomerang Plus plc ("the Company" or "the Group")Embargoed until: 0700hrs Boomerang Plus plc First Day of Dealings Boomerang Plus plc, a profitable and vertically integrated, multi-genre,independent television production group based in Cardiff, Wales, announces thatits shares have been admitted to trading on AIM today under the trading symbol:"BOOM.L" ("Admission"). The Company has raised £3.0 million (before expenses) through a placing of1,898,734 new ordinary shares of 1p per share ("Ordinary Shares") at a placingprice of 158p per share ("the Placing Price"). On Admission to trading of allissued Ordinary Shares at the Placing Price, the Group's market capitalisationwas £14.0 million. Commenting on Boomerang's first day of dealings on AIM, Huw Davies, CEO, said: "We are delighted that Boomerang has successfully listed on AIM today. TheGroup has built a strong business over the last 13 years and we believe thatAdmission to AIM will provide an ideal platform for future growth of theCompany. The independent television production market has increaseddramatically since the legislation issued by Ofcom, creating a substantialopportunity for the Group to act as a consolidator in the regional market.Boomerang has a strong team and we look forward to the future development of theCompany." Summary of Key Information - Boomerang is a vertically integrated, profitable, multi-genreindependent television production group operating within the Nations and Regions - Boomerang produces over 500 hours of television and radio content perannum for S4C, Channel 4, BBC Wales, ITV Wales, Sky and Discovery - The Group, founded in 1994, has extensive experience in producingcontent in a variety of genres, including youth programming, music,entertainment, children's programming, extreme sports and drama - The Group has good revenue visibility as a high proportion of itsbudgeted revenue is contracted with broadcasters - The market for independent television production companies in theNations and Regions has grown following quotas from the regulator Ofcom, whichrequire that, depending on the broadcaster, between 10 per cent. and 50 percent. of qualifying programming hours must be sourced from outside the M25boundary - Boomerang is ranked in the top five independent television productioncompanies, by revenue, in the Nations and Regions according to the BroadcastSurvey (Nations and Regions) 2007 - The Board's strategy is both to achieve strong organic growth byleveraging the Group's existing customer base coupled with strategicacquisitions, with a view to becoming a major supplier to UK networks looking tosatisfy their Nations and Regions quotas - Boomerang is well placed to lead the consolidation of regionalindependent production companies across the UK. Target companies which meet theacquisition criteria will have a strong track record, which will assist theGroup to grow further, outside Wales - The Placing proceeds are, inter alia, intended to provide finance foracquisition opportunities, fund the general working capital requirements of theGroup and provide the capacity for additional incentives for employees throughshare option schemes - The Directors believe that Admission will raise the Group's profile andassist the Group in attracting and retaining key employees Evolution Securities is the Company's nominated adviser and broker. Admission details: Placing Price 158pNumber of Existing Ordinary Shares 7,002,497Number of New Ordinary Shares being issued by the Company pursuant to the Placing 1,898,734Number of Sale Shares being sold pursuant to the Placing 320,522Number of Ordinary Shares in issue following Admission 8,901,231Percentage of Enlarged Issued Share Capital being placed pursuant to the Placing 24.9%Market capitalisation of the Company following the Placing at the Placing Price £14.0 millionGross proceeds of the Placing of New Ordinary Shares £3.0 millionNet proceeds of the Placing of New Ordinary Shares £2.3 million For further information and publication quality photographs, please contact: Boomerang Plus plc Via Redleaf CommunicationsHuw Davies, Chief ExecutiveMark Fenwick, Finance Director Evolution Securities Limited 020 7071 4300Tom Price/Jeremy Ellis Redleaf Communications 020 7822 0200Emma Kane/Sanna Lehtinen/Anna Dunkin This information is provided by RNS The company news service from the London Stock Exchange