First Property Regulatory News (FPO)

21 Feb 2006 07:01

First Property Group PLC21 February 2006 21 FEBRUARY 2006 First Property Group plc Acquisition of business and assets of Direction International plc First Property Group plc ('Fprop' or 'the Company') announces that it has acquired 60% of a new company, First Property Services Ltd, which in turn has acquired the property facilities maintenance business ("the Business") of Direction International plc, for a cash consideration of £60,000. The remaining 40% will be owned by the management of the Business. It is expected that the acquisition will be earnings enhancing for the year commencing 1st April 2006. The Business being acquired is engaged in the provision of facilities maintenance and building services to clients in the commercial and industrial property sector. The acquisition brings with it contracts with a value of circa £500,000 per annum. Clients include a large number of well-known blue-chip companies. The Business also provides services to buildings managed by Fprop and it is expected that more contracts will be introduced by the Company. In the year ended 31 March 2005 the Business achieved a turnover of £2.3 millionand a gross profit of £650,000 before overheads and broke even after the deduction of these costs. The structure of the Business has been rationalised as part of the acquisition process and it is expected that it will begin to trade profitably within a few months. The book value of the assets being acquired is approximately £60,000. Ben Habib, Fprop's chief executive, commented: "We have worked with the management team of Direction International for some time now and believe that this is a good opportunity to create a potentially valuable earnings stream for Fprop. The business fits well with the asset management side of Fprop and complements our expertise, opening up the potential of acquiring more managementintensive properties, both in the UK and Poland. In addition, we provide a strong and stable home for the business, which will allow it to continue to provide its clients with an excellent service." This statement should not be taken to mean that earnings per share in periods following the acquisition will necessarily be greater than those for the relevant preceding financial period. Further information:Ben Habib, Chief Executive Richard Sunderland/Rachel DrysdaleFirst Property Group plc Tavistock Communications LimitedTel: 020 7731 2844 Tel: 020 7920 3150 -Ends- Notes to Editors: First Property Group is an integrated, internet based, property services andasset management group. Its various divisions are: First Property Asset Management ("FPAM") - First Property Group's property fundmanagement subsidiary, commenced trading in October 2002. FPAM now has fivefunds, and in September 2005, Fprop won a mandate to invest up to £50 million onbehalf of the Universities Supperannuation Scheme, substantially increasing thecompanys funds under management. Commercial Property Database ("CPD") - In 2001, Fprop acquired CPD, whichprovides access to its interactive database of UK properties exclusively tocommercial property agents via their own web sites, giving multiple searchingof size, location and property type thus also providing agents with an incomegenerating facility. CPD provides database and web services to about 100commercial property agents in the UK. Online Sales of Properties - Fprop operates a web based business-to-businessproperty transaction platform established to facilitate the buying and sellingof UK commercial property. By combining an email marketing campaign, to itsdatabase of some 35,000 property practitioners, with links to detailed propertydetails, it sells property entirely online without the assistance of anytraditional services. Property Transaction Underwriting - the Company also operates a propertytransaction underwriting service. This service allows Fprop to target vendorswho have property for sale and offer to act as a buyer of last resort. If theproperty is sold on the market, any upside above the guaranteed price istypically shared 50/50 between the vendor and the Company. The Company onlytargets property which it believes it could add value to within a twelve totwenty four month period, with a view to a resale thereafter at a profit. This information is provided by RNS The company news service from the London Stock Exchange