FRM.L Regulatory News (FRM)

30 Aug 2005 07:02

Formation Group PLC30 August 2005 30 August 2005 FORMATION GROUP PLC (http://www.formationgroupplc.com) Formation Group PLC ("Formation" or the "Group"), a leading integrated sportsmanagement and marketing business, is pleased to announce that it has acquiredImagealert Limited, which trades as Richard Carpenter Associates (the "RCAGroup"), a business engaged in the provision of outdoor sports advertising andcorporate hospitality. Information on the RCA Group (http://www.carpenterassociates.net) Richard Carpenter and Associates was established in 1997 by Richard Carpenter(who was previously the sales and operations manager of the Premier League from1991 to 1997) as a perimeter advertising consultancy. He also established SportsManagement and Promotions Limited in 2001 to complement the perimeteradvertising business and provide a range of sports-related marketing andsponsorship consultancy services. In August 2005, Richard Carpenter andAssociates acquired certain of the assets of Sports Management and PromotionsLimited. The RCA Group currently employs three personnel with a further two consultantsand has an office in Leyland, Preston. The RCA Group principally provides thefollowing services: Perimeter advertising The RCA Group co-ordinates signage management, banners and all displayrequirements for sports events and it also allocates teams to project manage theevent programme. In addition the RCA Group provides specific advice to itsclients on artwork requirements and how best to adapt corporate advertising tosuit the sporting arena. The RCA Group is also the official perimeteradvertising sales contractor to six premiership football clubs and 16 Coca-ColaChampionship football clubs in England including Everton, West Ham, Portsmouth,Sheffield United, Preston and Ipswich. Sports advertising The RCA Group provides specific consultancy and advice to corporate brands ontheir advertising, promotions and marketing requirements in the sporting arena.It also provides solutions to its clients including specific marketingcampaigns, measurement of media exposure and comparative evaluation, all signagedesign and advice, planning services and related promotional activity. Corporate hospitality The RCA Group also provides a service in the hospitality market providing advicethat enables its clients to buy a hospitality package or programme best suitedto their corporate objectives, encouraging targeted client and employeeincentive programmes. The RCA Group also provides an extensive programme ofcorporate hospitality facilities at sporting events such as Premiership andNationwide Football League, Six Nations and Premiership Rugby Union, a range ofMotor Sports, Rugby League, Test and County Championship Cricket and HorseRacing events. Celebrity Appearances The RCA Group specialises in the supply of a network of predominantly"Footballing Celebrities". The individuals can be provided as after dinnerspeakers or as hosts to company events or functions. For the 12 months ended 30 June 2005, Imagealert Limited had unaudited turnoverof £1.37 million and a loss of £20,000. At 30 June 2005 the gross assets ofImagealert Limited were £69,000. For the 12 months ended 31 March 2005 SportManagement and Promotions Limited had unaudited turnover of £0.72 million andprofit before taxation of £71,000. The Gross Assets of Sport Management andPromotions Limited at 31 March 2005 were £280,000. The consideration payable for the RCA Group is up to a maximum of £0.992 millionto be satisfied as follows: - initial consideration of £250,000; - deferred consideration of up to a further £250,000 (£125,000 of which is payable on the first anniversary of completion and £125,000 of which is dependent on the financial performance of the RCA Group in the period to 31 August 2006); and - further consideration of up to a further £492,000 dependent on the financial performance of the RCA Group in each of the financial years to 31 August 2006 and 31 August 2007. In order for the maximum consideration to be paid, the RCA Group would have togenerate profit after taxation of £1.4 million in the two years ending on 31August 2007. The acquisition of the RCA Group will complement the Group's existing SportsMarketing Division and will increase the scale of this division with an increasein the range of perimeter advertising solutions that can be offered to theGroup's clients in addition to the existing static perimeter and advertisingoptions currently offered by Fox Advertising and Sponsormatic ApS (a subsidiaryof the Group) and increased opportunities for synergy and cross sellingopportunities with other Group divisions. Neil Rodford, Chief Executive Formation Group Plc commented: "I am delighted that we have been able to add further scale to our SportsMarketing Division following the acquisition of the RCA Group. We have added anestablished business and an excellent management team with a strong trackrecord. This will add to the range of services we currently offer our customerbase." Richard Carpenter said: "Following 21 years in the trade and eight years of trading on my own, I feltthat the interests of my business and in particular its clients would be bestserved by joining a larger organisation. Formation, as a market leader, was anobvious fit and I greatly look forward to working with them." For further information, please contact: Neil Rodford, Chief Executive, Formation Group Plc 01625 539832 Archie Berens, ICIS Limited 020 7651 8688 / 07802 442486 This information is provided by RNS The company news service from the London Stock Exchange