Journeo Regulatory News (JNEO)

2 Feb 2005 07:00

Embargoed Release: 02 February 2005 0700hrs Toad Group plc ("the Company") Proposed transfer to AIM and exercise of option to acquire the remaining preference shares in 21st Century Toad Group plc announced today that it is planning to move the Company'sordinary shares from the Official List of the United Kingdom Listing Authority(the "Official List") to the Alternative Investment Market of the London StockExchange ("AIM") in the second quarter of 2005.The transfer to AIM will allow the Company to pursue acquisitions in the mostcost effective manner and will simplify the ongoing administration andreporting requirements of the company.In view of the encouraging early progress made with its recent 25% investmentin 21st Century Crime Prevention Services Limited ("21st Century") thedirectors are keen to exercise the Company's option to acquire a further 24% of21st Century at the option price of ‚£750,000 in cash. These remainingpreference shares yield a dividend entitlement of ‚£245,000 per annum which willbring the cumulative dividend entitlement to ‚£500,000 per annum. The directorsintend to exercise this option only once the Company has moved across to AIM toavoid the disproportionate costs which would otherwise be associated with thetransaction if the Company were to remain on the Official List. The Company hasa further option to acquire the remaining 51% of 21st Century.As an AIM company, the Company will continue to be subject to the regulatoryand disciplinary controls of the London Stock Exchange. The board believes thatAIM, with its lower cost of complying with continuing obligations, is a moreappropriate market for the Company given its size and shareholder base.Shareholders should be reassured that, so far as is known to the directors,with the exception of shares held in a Personal Equity Plan or an IndividualSavings Account, the transfer to AIM will in no way affect their ability tohold shares in the Company and existing share certificates will remain valid.Shareholders should note that shares held in companies trading on AIM aretreated as unquoted for purposes of certain tax reliefs, although shareholdersshould seek their own financial advice on this point.The group is currently trading in line with market expectations and expects torelease its Year End Figures in the middle of March 2005. -ENDS- For enquiries please contact:Peter WardChairman, Toad Group plcWilson JenningsFinance Director, Toad Group plcTel: 020 8710 4000Ben SimonsHansard CommunicationsTel: 020 7245 1100END