CLL.L Regulatory News (CLL)

3 Oct 2005 07:00

Cello Group plc03 October 2005 CELLO INVESTS IN DIGITAL AND ON-LINE MARKETING SERVICES COMPANY Cello Group plc ("Cello"), the marketing services group, has made an investmentwith an option to take control in OMP Services Limited ("OMP"), the holdingcompany for Oomph Agency Services Limited ("Oomph"), a newly created digitalsupport services company. Oomph, which was established in 2005 by Stephen Priestnall and Rodger Williams,provides clients with digital and on-line marketing communications, workingclosely with Talking Numbers, the data analytics subsidiary of Cello that sitswithin Cello's direct marketing platform. Current clients of Oomph includeCo-operative Financial Services and Cox & Kings Group. Stephen Priestnall was formerly Managing Director of Syzygy UK, a digital agencylisted on the Deutsche Borse. Rodger Williams was formerly Creative Director ofBates UK and worked at Abbot Mead Vickers, CDP, and Leo Burnett. Cello has made an investment in the form of a convertible loan of up to £130,000and has the option to acquire 50.1% of the issued share capital of OMP beforeDecember 2008 for a consideration of £300,000, less the outstanding loan,payable partly in shares and partly in cash. The remaining 49.9% of OMP issubject to a put option by the vendors, with the consideration being based onfuture performance, and subject to a maximum of £1.5 million, up to 75% of whichwould be payable in Cello ordinary shares. The total maximum payable for 100% ofOMP is £1.8m. Mark Scott, Cello Chief Executive, said: "Cello already has a strong footprint in the digital marketing world, in a rangeof applications. We are committed to expanding our digital capability both indirect marketing, on-line brand building, and on-line research. OMP is thefirst of a number of developments which will strengthen our existing digitalcapabilities. Our objective is to become UK market leader in the provision ofsuch services." 3 October 2005 Enquiries: Cello GroupMark Scott, Chief Executive 020 7812 8460 College HillAdrian Duffield/Clare Warren 020 7457 2020 Notes to Editors (www.cellogroup.co.uk) Cello Group plc is a marketing services group which listed on AIM in November2004. 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, branddevelopment, and direct marketing and database management. Each platform hassignificant organic and acquisitive growth potential; blue chip clientrelationships with a history of client loyalty; experienced, high qualitymanagement teams; and a track record of profitability. Market Research * Insight Research Group - London and New York Insight is a specialist healthcare market research business which 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. * 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, a quantitative market research and business consultancy. Based inLondon, 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. Brand Development * Leith - Edinburgh and London Leith is the largest and most successful advertising 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, Carling, 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, T-Mobile and Britvic. Direct Marketing and Database Management * 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. * 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,Intelligent Finance and Remy Martin. This information is provided by RNS The company news service from the London Stock Exchange