Cloudcoco Regulatory News (CLCO)

9 Aug 2007 07:09

Glen Group PLC09 August 2007 Glen Group plc ("Glen" or "the Company") Acquisition of I G Software Limited, trading as inGroup ("inGroup") Glen Group plc, the Edinburgh based provider of integrated IT and communicationservices, is pleased to announce it has acquired the entire issued share capitalof inGroup, an IT professional services and value added reseller, through itssubsidiary Eclectic Group Limited ("Eclectic"). The acquisition of inGroup was for a total consideration of £1,350,000 satisfiedby the issue of 200,000,000 shares at 0.55 pence per share and £250,000 in cashfunded from internal sources and bank facilities. The price per share representsa premium of 100% above the mid-market price at the close of business on 8thAugust 2007. inGroup provides consultancy services and software to assist organisationsaddress corporate performance management needs, such as improved financialreporting, budgeting and planning. inGroup is vendor independent, allowing it toadvise organisations and tailor solutions and technology to a client's specificneeds. inGroup manages the entire process, from the initial business discoveryand requirements analysis through to implementation, training and support,providing resources at any given point in the process. The services provided by inGroup are highly complementary to the BusinessIntelligence ("BI") focus of Eclectic which, when coupled with inGroup'sperformance management solutions, delivers a consultancy offer that is wider inscope than a pure BI proposition. Prior to the acquisition, Eclectic had startedworking on joint proposals with inGroup and has already been successful atgaining its first joint contract. The acquisition also brings with it a permanent base in the London area, whereEclectic is also active. Eclectic intends to fully integrate the consultingteams and the two principals of inGroup, Surit Patel and Jofi Alexander, willhead up Eclectic's London area operations post completion. Below are the results of inGroup for the year ended 31st December 2006 takenfrom the unaudited filed accounts for that year. The unaudited figures for thehalf-year to 30th June 2007 are taken from the internal management accounts. Theaccounts are prepared under UK GAAP. INCOME STATEMENT 6 Months ended Year ended 30th June 2007 31st December 2006 £ £Turnover:Consultancy and support 702,767 1,446,454 Cost of Sales:Direct costs (282,135) (672,049) Gross Profit 420,632 774,405 Overheads (346,359) (877,357)Other operating income 0 667 Operating Profit/(loss) 74,273 (102,285) Interest (net) 3,185 3,889Profit/(loss) before taxation 77,458 (98,396)Taxation 0 0Profit retained 77,458 (98,396) inGroup has made significant changes to its business in the last six to ninemonths which has had the effect of materially reducing its overhead base.Although not a material factor in the decision to acquire inGroup, Eclecticexpects to make further savings when the two businesses are fully combined,largely by reducing duplicative processes. At 30th June 2007, inGroup had cash resources of £243,764 and no debt. The balance sheets of inGroup, taken from the unaudited filed accounts at 31stDecember 2006 and the unaudited management accounts as at 30th June 2007prepared under UK GAAP are summarised as follows: BALANCE SHEET 30th June 2007 31st December 2006 £ £Fixed Assets 0 0 Current AssetsStock 0 10,800Debtors and prepayments 403,880 258,344Bank and cash 243,764 155,084Total Current Assets 647,644 424,228 Current LiabilitiesCreditors and accruals 293,501 155,273Taxation and social security 35,160 27,430 Total Current Liabilities 328,661 182,703 Net Current Assets 318,983 241,525 NET ASSETS 318,983 241,525 Represented by: Share capital 1,750 1,750Share premium 74,250 74,250Reserves 242,983 165,525 SHAREHOLDERS' EQUITY 318,983 241,525 Commenting today Graham J Duncan, Chief Executive of Glen Group plc, said: "inGroup is highly complementary to Eclectic, giving us a solid London area baseand bringing to Eclectic a group of consultants who are focused on corporateperformance solutions across a range of software platforms. We can see immediatevalue being added. This acquisition is very much in keeping with our strategy tobuild Glen Group through bolt-on opportunities, which enhances our services tocustomers as well as strengthen our organic growth". 9th August 2007 Enquiries: Glen Group plcGraham J Duncan, Chief Executive Tel: 0845 119 2100 Pelham PRAlex Walters Tel: 0203 170 7435Robert Koh Tel: 0203 170 7444 Seymour PierceJonathan Wright Tel: 0207 107 8000 Notes: Glen Glen is a value added, solutions based provider of IT and communicationsproducts and services. In the SME market it provides a wide range of integratedservices including IT consultancy and support, mobile solutions including voiceand data, customer relations management, telecommunications and hosted broadbandservices. In the corporate, enterprise and public sector, the group is a nicheprovider of business intelligence and related IT solutions. The group has offices in Glasgow, Edinburgh, Rotherham and London. Eclectic Eclectic is a specialist firm of Business Intelligence practitioners, providingmanagement information, performance management, data quality and integrationsolutions for both the commercial and public sectors. These solutions help organisations to monitor, manage and improve performance byproviding accurate and consistent views of performance, relating to employees,products, services and customers. Eclectic helps empower people to make betterand more informed decisions. This information is provided by RNS The company news service from the London Stock Exchange