30 Jun 2010 07:00
Date: 30 June 2010
On behalf of: Easydate plc ("Easydate"or "the Company")
Easydate plc
First Day of Dealings on AIM
Easydate plc, the internet-based dating operator,is pleased to announce that, following its recent placing, its shares have been admittedto trading on AIM.
The Company is raising approximately £10 millionbefore expenses by way of a placing of 16,666,667 new Ordinary Shares and, pursuantto the placing, 8,333,333 existing Ordinary Shares and Option Shares are being sold.
10,000,000 new Ordinary Shares, 8,333,333 of theexisting Ordinary Shares and the Option Shares, together with the Company's remainingexisting Ordinary Shares are expected to be admitted to trading on AIM on 30 June2010. 6,666,667 new Ordinary Shares are expected to be admitted to AIM on 1 July2010.
In total, 33.31% of the Enlarged Issued ShareCapital of the Company is being placed and, upon admission of both all of the newOrdinary Shares and existing Ordinary Shares and Option Shares, the Company's market capitalisation at the Placing Price of 60pper share will be approximately £45 million.
Cenkos Securities plc, through its Edinburgh office,is acting as Nominated Adviser and Broker to the Company.
Commenting onEasydate's Admission to AIM, Bill Dobbie, Chief Executive Officer said: "The internet dating sector is growingrapidly and we believe that the increased profile and additional funding our quotationon AIM brings will provide an opportunity for us to grow Easydate into a substantialglobal internet dating business.
"The response we have had from the market duringthe placing has been tremendous. After a lot of hard work to get the Company thisfar, we are now looking forward to life as an AIM quoted company and the opportunitiesthat will bring."
Placing Statistics
| Placing Price | 60 pence |
| Number of Existing Ordinary Shares in issue priorto the Placing | 56,798,360 |
| Number of New Ordinary Shares being issued pursuantto the Placing |
16,666,667 |
| Number of Existing Ordinary Shares and OptionShares being sold pursuant to the Placing |
8,333,333 |
| Number of Ordinary Shares in issue immediatelyfollowing Second Admission |
75,047,067 |
| Percentage of the Enlarged Issued Share Capitalbeing placed (including the Sale Shares) | 33.31 per cent. |
| Estimated gross proceeds of the Placing of NewOrdinary Shares (approximately) | £10 million |
| Estimated net proceeds of the Placing receivableby the Company (approximately) | £8.8 million |
| Market capitalisation immediately following completion of the Placing at the Placing Price(approximately) | £45 million |
| AIM 'ticker' | EZD |
| ISIN number | GB00B4NJ4984 |
For further information please contact:
Easydate plc Tel: +44 (0)131 220 1313
Bill Dobbie, CEO
Cenkos Securities plc Tel: +44 (0)131 220 6939
Ken Fleming/Jon Fitzpatrick/Alan Stewart
Redleaf Communications Tel: +44 (0)207 566 6709
Paul Dulieu/Mike Ward easydate@redleafpr.com
Summary of Key Information*
Through its growing network of websites, EasydateGroup has built a base of over 13 million registrants and over 9 million membersin 29 countries (those countries with over 1,000 members), with a growing proportionof members coming from outside of the United Kingdom. It offers a wide variety ofonline dating services allowing members to interact with each other and access thecontent available on the Group's websites. These websites are intended to appealto dating users of diverse ages, cultures and social interest groups. The Group'smost heavily visited websites include www.benaughty.com, www.cupid.com, www.girlsdateforfree.com and www.datetheuk.com. TheGroup also promotes the niche brands www.datingforparents.com, www.speeddater.comand www.maturedating.co.uk.
Business Strategy
Easydate Group's goal, as one of the UK's leadinginternet-based dating operators, is to increase revenues whilst improving overallprofitability. Founders Bill Dobbie and Max Polyakov have a strong track record increating successful, innovative technology products. This experience has been utilisedto establish the technology platform of the Group, which helps the business to deliverits products and drive increasing volumes of web traffic to its websites. The Directorsbelieve this assists the business increase the number of subscribers and its marketingknowledge of the demographics and interests of its users. The Directors' believethe Group's strategy in operating and expanding its websites and cross-selling andmarketing these to its network of users provides brand and marketing leverage, increasesawareness and familiarity within the Group's target audience and wider on-line community,all of which the Directors believe are key to driving the Group's successful expansion.
The Directors plan to maintain and extend theGroup's position as one of the UK's leading providers of internet-based datingservices by pursing the following growth strategies:
- Introduce new sitesto the UK and to expand internationally
- Maximise existing UKgrowth by encouraging visitors, registrants and members to become subscribers
- Continue to developoutsourcing and ancillary revenues
- Continue to increaseour affiliate marketing network
- Accelerate presenceand growth in foreign markets
- Acquisitions
Competitive Strengths
The Directors believe that the Group's core strengthslie in its:
- User base: The Group's websites aresignificantly sized in the UK on-line marketplace, currently adding on average morethan 300,000 new registrants and more than 200,000 new members each month. The Boardbelieves that the Group's large established user base represents a significant advantageover new market entrants in the UK.
- Large affiliate network: The substantialnumber of registrants in Easydate's marketing affiliate program allows the Groupto market its brands beyond its established users by collaborating with other organisationswhich market the Group's services on their own websites. The Directors believe thatthe scale of the network reduces the Group's dependence on 'paid for' search resultsand also provides an advantage over competitors.
- Innovative and scalable technology platform: TheEasydate business has developed a robust, highly scalable technology platform overthe last five years that allows Easydate to add new features and launch additionalwebsites at a relatively low incremental cost and without significant capital expenditure.The Group's in-house Ukrainian-basedtechnical and on-line marketing team provides the Group with a highly skilled, lowercost base which the Directors believe offers a medium term competitive cost advantage.
- Effective, capable and internationally-oriented management team: Easydate's management team has developed internally as the businesshas grown and has expanded its capabilities in line with the Group's growth. Thebusiness has a track record of developing and retaining key staff. The Directorswill seek to develop the management team commensurate with the growing requirementsof the business, particularly as the Group expands in overseas marketplaces.
The Market
The worldwide market for dating services is estimatedby the Directors to be in excess of US$1 billion and growing in the established USmarket at approximately 3 per cent., in the UK at between 6 per cent. and 10 percent. with emerging markets growing at a far higher rate. The Directors believe thatthis growth is being driven by wider usage of dating and social networking applicationsand increased access to the internet, in particular by using broadband connectionand via mobile phones. In addition, the increasing number of one-person householdsand divorcees also contributes to the rise in interest in online dating. On-linedating is cost effective and convenient in comparison to more traditional methodsof dating such as introduction agencies. An increasing number of individuals subscribedto online dating websites despite the recent recession in the UK. The Directors believethat this was due to a combination of the low subscription costs and individualswishing to seek a relationship in difficult times. Whilst, in the Directors' opinion,there is increasing social acceptance in many geographical and demographic marketsof online dating, the worldwide market outside the USA is currently at an earlierstage in its development. With the exception of a few large participants, the onlinedating market is largely fragmented, currently comprising many small private operators.
Reasons for the Placing and Use of Proceeds
The Directors consider that Admission will bean important step in the Group's development, will enhance its standing within itsmarket place and will assist the growth in its business. In particular it will enablethe Company, if required, to raise additional capital to support its strategic objectivesas suitable opportunities arise. It is also expected to provide liquidity for investorsthrough the ability to buy and sell Ordinary Shares, will provide a more diversifiedshareholder base and allow the existing Shareholders to realise part of their investmentthrough the disposal of the Sale Shares as part of the Placing.
The Directors believe that Admission will alsoprovide opportunities for the Group to attract, retain and incentivise highcalibreemployees through the operation ofShare Option Schemes and allow employees to participate in the future success ofthe Group.
The Placing of the New Ordinary Shares will raiseup to approximately £8.8 million (net of expenses) for the Company. The Directorsbelieve that a solid platform for growth has been achieved, and that the funds availableto the Company from the Placing will enable the Group to continue to grow and totake advantage of new opportunities as they arise. In particular, the net proceedsof the Placing available to the Company, together with the Group's existing cashresources, will be utilised principally to fund:
- an acceleration inthe Group's acquisition programme;
- the roll out of datingwebsites in commercially attractive foreign territories; and
- the development andlaunch of new niche websites.
The Company will use the remaining balance ofthe net proceeds of the Placing available to it for general working capital purposes.The strengthening of the Group's balance sheet with the proceeds of the Placingavailable to it will also enable the Group to consider gearing, if appropriate.
Notes to Editors:
Key milestones
- Easydate's businesswas established in 2005 by Bill Dobbie and Max Polyakov;
- Development of thebusinesses' innovative, scalable technology platform and launch of www.benaughty.comin 2007;
- in March 2008, acquisitionof www.speeddater.com, a leading operator of UK speed dating events;
- in December 2008, acquisitionof part of the mobile business of NetPlay TV Mobile Limited as the catalyst for theGroup's mobile operations;
- in late 2008, introducedoutsourcing services and signed Allegran Limited as its first customer
- expanded the businessinternationally in 2009 and currently generates revenues from subscribers in morethan 10 countries;
- in March 2010, theCompany acquired the business and assets of Allegran Limited, the Daily Mail's onlinedating business which expanded the Group's existing portfolio to include the www.girlsdateforfree.comand www.loopylove.com websites; and
- by April 2010, theGroup had approximately 13 million individual profiles registered with it (comparedwith approximately 5 million individual profiles registered with it in June 2009).
Board of Directors
Bill Dobbie (aged 51), Chief Executive Officer
Bill Dobbie is an experienced company directorof technology based companies and left AIM-quoted iomart Group plc which he co-foundedin 1998 after 6 years on the Board. Bill was instrumental in iomart Group plc'ssuccessful flotation in 2000, and also its successful repositioning in 2004. He wasBusiness Development Director for five years in his executive capacity at iomartGroup plc. Prior to that Bill worked as a director of Scottish Telecom plc afterhis previous company, Teledata Ltd, had been acquired by Scottish Telecom plc in1996. Bill was appointed Director of many of the companies Scottish Telecom plc acquiredduring his 2 years working there including Demon Internet. Before building and sellingTeledata Ltd, Bill built up 10 years international experience in the computer industrywith Unisys. He is also non-executive chairman of Maxymiser Limited, a leading weboptimisation system, as well as a non-executive director of Tag Games Ltd and IDEGroup Ltd. Bill holds an honours degree in Pure Mathematics from the University ofSt. Andrews and an MBA from Glasgow University.
Max Polyakov (aged 32), Chief Operating Officer
Max Polyakov gained a medical degree from theMedicine Zaporozhye State Medical University in the Ukraine before qualifying asa doctor. He then gained a business school qualification before building his firstsuccessful technical services company Alarit in the Ukraine. Max moved to the UKin 2004 to finish development of HitDynamics of which he was chief executive officer.This company was a provider of web analytics software allowing website owners totrack traffic to their sites and ascertain which traffic sources deliver conversionsto sales. HitDynamics was sold to Hitwise (now Experian) in 2006. He started theEasydate Group business with Bill Dobbie in 2005. Max is based in the Group's Edinburghheadquarters.
Mark Doughty (aged 41), Finance Director
Prior to joining Easydate in April 2010, Markspent 4 years as chief financial officer, chief operating officer and company secretaryof Australian Stock Exchange listed Jumbuck Entertainment Ltd, which supplies chatand dating sites to over 120 of the world's leading telecommunications companies.Jumbuck's products included Fastflirting, Powerchat, Mobilove, Mobiflirt and oneof Australia's largest auction and car sales websites. Mark has many years experiencewith fast growing private and publicly listed international businesses. He has beenchief financial officer of Edinburgh-based global web learning company The InteractiveUniversity and, for 6 years, was chief financial officer of AIM-quoted technologycompany Memory Corporation plc. Mark also co-founded a growing software businessand spent several years with AWG Plc as head of finance for their property division,responsible for over £1 billion in investment. Mark is a graduate of Heriot-WattUniversity in accountancy and finance and qualified as a chartered accountant inScotland with PwC. He will be based in Easydate's Edinburgh headquarters from August2010.
George Elliott, (aged 57), Chairman and Non-ExecutiveDirector
George Elliott is non-executive chairman of AIM-quotedCraneware plc, a leading supplier of revenue cycle software for the US healthcareindustry and Corsair Memory Inc., a leading designer and supplier of high-performancecomponents to the PC gaming hardware market, based in Fremont, California. Georgeis also a non-executive director of AIM-quoted drug discovery company Summit Corporationplc, Oxonica plc, a developer of nanomaterials and Scotcloth Limited, a softwaredeveloper. From 2000 to 2007, George was chief financial officer of Wolfson Microelectronicsplc, a leading global provider of high performance semiconductors to the consumerelectronics market. During his tenure, he oversaw the company gaining entry to theFTSE 250 Index. Prior to this, he was business development director at McQueen InternationalLtd (now Sykes), where he was responsible for strategic sales and marketing. George,formerly a partner of Grant Thornton, is a chartered accountant and is a graduateof Heriot-Watt University in accountancy and finance and is based in Edinburgh. Georgejoined Easydate as independent Chairman and Non-Executive Director in May 2010.
Martin Higginson (aged 47), Non-Executive Director
Martin Higginson formed his first business atthe age of 19, which he went on to sell to publishing giants, IPC Magazines. In 1987Martin Higginson founded Megafone Limited, a company specialising in the deliveryof premium rate competition services. This company was sold to Scottish Power plcin 1998. Within Scottish Power plc, Martin oversaw the integration of six newly acquiredbusinesses into the interactive content business and, prior to the company's flotationunder the new name of Thus plc, he was responsible for the company's internet andinteractive businesses (including Demon Internet). He left Thus plc in July 2000when he was Business Development Director responsible for mergers, acquisitions andbusiness development across the Thus plc portfolio, and founded Monstermob, a companyhe floated on the London Stock Exchange in 2003. He is currently Chief ExecutiveOfficer of AIM-quoted NetPlayTV plc, the UK's largest interactive TV gaming company.Martin Higginson joined Easydate as a Non-Executive Director in December 2009 havingpreviously been a Non Executive Director of companies in the IDE Group of Companiesfrom 2008.
*This summary should be read in conjunctionwith the full details set out in the Admission Document