CLL.L Regulatory News (CLL)

26 Sep 2006 07:03

Cello Group plc26 September 2006 26 September 2006 CELLO ACQUIRES STRATEGY & RESEARCH CONSULTANCY SMT Cello Group plc ("Cello", AIM: CLL), the research and data led marketingservices group, has acquired SMT Consulting Limited ("SMT"), a leading strategyand research consultancy specialising in the fast growing market of business andcompetitive intelligence. Initial consideration consists of up to £6.2 millionwith further performance related consideration of up to £8.8 million. SMT's client base includes around 20% of the FTSE 100 companies and a number ofFortune 500 corporations in the areas of financial services, nuclear &utilities, telecoms and FMCG. It is based in Oxford, employs approximately 35people and also has an office in Shenzhen, China. The initial consideration consists of up to £6.2 million of which £4.2 millionis payable in cash and the balance satisfied by the issue of 1,542,480 newordinary shares. In addition, there are further performance related paymentsover the period to 31 December 2010. These payments are in a mixture of loannotes and new ordinary shares at Cello's discretion, with a maximum shareelement of 75%. In order to finance the cash element of the acquisition, Cello has entered intoa new £12 million committed three year banking facility. Following thetransaction, Cello has net debt of approximately £2 million. For the year to 30 April 2006, SMT had a turnover of £3.4 million and normalisedprofits before tax of £0.8 million. Net assets at 30 April 2006 were £0.7million 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 29September 2006. Kevin Steeds, Cello Group's Chairman, said: "SMT is an exciting addition to the Cello Group, further strengthening ourupstream research and consulting offer. With its impressive client franchise inthe UK and Asia, SMT also helps accelerate the development of our internationaloffering." Enquiries: Cello GroupKevin Steeds, Executive Chairman 020 7812 8461 College HillAdrian Duffield/Ben Way 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello Group plc is a research and data led marketing services group that listedon 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 marketing services sector: market research and planning,brand strategy and consultancy, and direct marketing, digital and databasemanagement. 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, New York and Basel 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 recently acquired FML, a leading field force company. * Leapfrog Research and Planning - Windsor and New York 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,Toyota, AA, RHM and Wyeth. * RS Consulting - London RS Consulting is a quantitative market research and business consultancy. Basedin London, the company employs approx 80 people across its three subsidiaries.Major clients include hp, Xerox, Sony, FedEx, Department of Work & Pensions,Cisco Systems, 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 which has recently been integrated withFarm. Leith's major clients include Irn Bru, Scottish Executive, Standard LifeBank, Standard Life, Smile, ICI, FT 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. * 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, Abbey and RemyMartin. This information is provided by RNS The company news service from the London Stock Exchange