CLL.L Regulatory News (CLL)

26 Jun 2006 07:19

Cello Group plc26 June 2006 26 June 2006 CELLO INVESTS IN BRAND CONSULTING OPERATION Cello Group plc ("Cello") (AIM: CLL), the research and data led marketingservices group, is strengthening its brand consulting operating platform withthe acquisition of Farm Communications Limited ("Farm") for a total maximumconsideration of £2,332,000 in a mixture of cash and new ordinary shares. Theinitial consideration consists of up to £700,000, of which up to £300,000 willbe paid in cash and the balance satisfied by the issue of 326,532 new ordinaryshares. In addition, there are further performance related payments in respect of theperiod to 31 December 2007 of up to £1,632,000 payable £408,000 in cash and thebalance in new ordinary shares. Farm will be merged with Leith London. Its clients include Smile, SACLA, Youngs,ICI, Smart and COI. For the year end 31 December 2005, Farm achieved £1.6m ofgross profit, and at December 31 had net assets of £87,000. Application has been made to the London Stock Exchange for the new shares to beadmitted to AIM and it is expected that admission will take place by 1 July2006. Enquiries: Cello Group Mark Scott, Chief Executive 020 7812 8464 College Hill Adrian Duffield/Ben Way 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello Group plc is a marketing services group that listed on AIM in November 2004. The Group's strategy is to create value for shareholders by building a portfolioof companies around three specialist platforms, each operating within adifferent niche of the UK marketing services sector: market research andplanning, brand consultancy, and direct marketing/database management. Cello has annualised turnover of approx. £65 million, annualised gross profit ofsome £35 million and employs approx. 500 people. Each of Cello's three platforms has significant organic and acquisitive growthpotential; blue chip client relationships with a history of client loyalty;experienced, high quality management teams; and a track record of profitability. Cello Planning and Research * Insight Research Group - London and New York Insight is a specialist healthcare market research business that offers a broadrange of quantitative and qualitative research based solutions. Its clientsinclude GlaxoSmithKline, Novartis, AstraZeneca, Shire Pharmaceuticals,NovoNordisk, Boehringer Ingleheim, Lundbeck, Pfizer, Roche and Merck, Sharp andDohme. Insight also incorporates FML, a leading field force company. * Leapfrog Research and Planning - Windsor Leapfrog is a leading consumer market research and planning consultancy offeringqualitative and quantitative research in the UK and internationally. It actsfor a number of blue chip clients including Tesco, GSK, BBC, Scottish Courage,AA, RHM and Wyeth. * RS Consulting - London RS Consulting is a quantitative market research and business consultancy. Basedin London, the company employs approx. 70 people across its three subsidiaries.Major clients include hp, Xerox, Sony, FedEx, Department of Work & Pensions,AXA, Yell, RBS, AON and BUPA. Cello Brand Consulting * Leith - Edinburgh and London Leith is the largest and most successful branding agency in Scotland. Theagency has been voted Scottish Agency of the Year for the last five years. Leith opened a London office in 2000. Leith's major clients include Irn Bru,Scottish Executive, Grolsch, Standard Life Bank, Hotpoint, Standard Life,Silentnight and Goodfellas Pizza. * The Value Engineers - Beaconsfield TVE is a leading strategic brand consultancy focused on four core disciplines;branding, strategy, insight and innovation. Clients include Unilever,Carlsberg, Diageo, Sony Ericsson, ICI, Visa, BP, T-Mobile and Britvic. * TMI - Redditch Formed in 1978 TMI UK employs some 60 staff and is a leading provider oforganisational development and consultancy solutions to a range of blue chipclients including Toyota, hp, Metronet, Marks and Spencer, the Foreign andCommonwealth Office, National Express Group and Serco Solutions. Cello Response * Target Group - Cheltenham and Cirencester Target is the leading direct and database marketing consultancy specialising inthe "not-for-profit" and charity sector. The agency works for five of the top20 charities in the UK. Target is expanding into the "grey sector" of productsand services for older people for clients such as National Trust, Saga andWhich? Limited. Target has a leading database subsidiary, Talking Numbers and asuccessful print management operation, Target Direct Print. More recently,Target helped start a digital business, Oomph. * Navigator Responsive Advertising - Edinburgh Navigator Responsive Advertising, Scotland's leading direct marketing agency,provides responsive communication solutions for a wide range of clientsincluding HBOS Group, De Vere Resort Ownership, ScottishPower, Scottish Widows,Abbey and Remy Martin. This information is provided by RNS The company news service from the London Stock Exchange