CAY.L Regulatory News (CAY)

14 Jun 2007 07:00

Charles Stanley Group PLC14 June 2007 Charles Stanley Group Plc: Announces the acquisition of Garrison Investment Analysis Limited Charles Stanley Group Plc ("Charles Stanley") is pleased to announce theacquisition of Garrison Investment Analysis Limited ("Garrison") for a maximumconsideration over a period of two years of £8 million. The initialconsideration for the acquisition of 75.1% of the equity is approximately £6million satisfied by a combination of cash and loan notes. The remaining balanceof 24.9% will be acquired for approximately £2 million on the second anniversaryof the initial completion. The warranted net assets figure at the time ofcompletion will be £325,000 comprising cash and freehold property. As part ofthe acquisition agreement Garrison will distribute all post tax earnings by wayof dividend to the shareholders for the next two years. Garrison is one of the leading discount financial intermediaries within the UK,concentrating on the direct marketing of investments to individuals, primarilyvia its Fundchoice platform. The business focuses on marketing unit trusts andOEICs together with other packaged products in a variety of wrappers such asISAs and pensions. The company was founded over 20 years ago and is based inBeverley, East Yorkshire. The company utilises the Cofunds platform andcurrently has approximately £200 million of assets held under administration forclients. In addition, the company also has under administration approximately£175 million of other assets within collectives, held either in clients ownnames or through other investment management platforms. For the year to 31st March, 2007, Garrison's revenues on an unadjusted basiswere approximately £2.7 million and profits before tax were £63,000. Takingaccount of certain adjustments that will be made post acquisition, including asignificantly different format for remuneration, pro forma revenues and profitsbefore tax for the year to 31st March, 2007 were approximately £2.35 million,and £1.15 million respectively. The existing senior management team comprising of John Duerden, John Shires andColin Campbell will remain on the board of Garrison Investment Analysis Limitedtogether with representatives from Charles Stanley & Co Ltd. For further information please contact: Charles Stanley Group PLC Garrison Investment Analysis Hudson Sandler Limited25 Luke Street 5/7 Landress Lane 29 Cloth FairLondon Beverley LondonEC2A 4AR HU17 8HA EC1A 7NNMike Lilwall John Duerden Magnus WheatleyDirectorTel: 020 7739 8200 Tel: 01482 861455 Tel: 020 7796 4133 This information is provided by RNS The company news service from the London Stock Exchange