CLL.L Regulatory News (CLL)

23 Oct 2007 07:01

Cello Group plc23 October 2007 23 October 2007 Cello Group plc Acquisition of 2CV extends research capabilities Cello Group plc ("Cello", AIM: CLL), the market research and consulting grouphas acquired 2CV Limited ("2CV"), a specialist consumer market researchconsultancy. Initial consideration is approximately £5.4 million with furtherperformance related consideration of up to a maximum of £5.5 million. 2CV, which was founded in 1996 by Vincent Nolan, provides market research andconsultancy services to a number of major global brands. It also advises clientson product development, creative marketing communications and strategic mediaplanning. The initial consideration consists of approximately £5.4 million of which £3.5million is payable in cash and loan notes, with the balance satisfied by theissue of 1,330,731 new ordinary shares. In addition, there are furtherperformance related payments over the period to 31 December 2010. These furtherpayments are in a mixture of loan notes and new ordinary shares at Cello'sdiscretion, with a minimum overall loan note consideration of approximately 50%of the further consideration. For the year to 31 May 2007, 2CV had an audited turnover of £5.7 million, grossprofit of £4.0 million and profits before tax of £0.7 million. Net assets as at31 May 2007 were £0.7 million including cash of £0.5 million. 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 26 October2007. Kevin Steeds, Cello Chairman, said: "2CV has an excellent reputation within the marketing industry as athought-leading and innovative consumer insight agency. The 2CV acquisition isconsistent with our strategy of building a substantial international research &consulting group." Enquiries: Cello GroupKevin Steeds, Executive Chairman 020 7812 8460 College HillAdrian Duffield/Rozi Morris 020 7457 2020 Evolution SecuritiesBobbie Hilliam 020 7071 4347 Notes to Editors (www.cellogroup.co.uk) Cello is a market research and consulting group that listed on AIM in November2004. The Group's strategy is to create value for shareholders by building aportfolio of research and consulting businesses capable of advising blue chipclients globally. Cello has annualised turnover in excess of £100 million, operating income ofover £55 million and employs approx 650 professional staff. This information is provided by RNS The company news service from the London Stock Exchange