Last checked at 15 Apr 2010 13:55
FOR IMMEDIATE RELEASE 15 April 2010
Managed Support Services plc
("MSS" and the "Company")
Acquisition of Data Sound Limited ("DS") & Pre-close Trading Update
Acquisition of DS
MSS is pleased to announce the acquisition of Data Sound Limited ("DS") for a total net consideration of £2.8 million, payable in cash at completion, subject to a potential post completion working capital adjustment. Data Sound is a specialist Health & Safety consultancy offering a broad range of legislative monitoring and Health & Safety services to a corporate customer base.
Data Sound was acquired from private vendors. Completion took place today.
In the year to September 2009, Data Sound recorded turnover of £2.3m with a reported profit before tax and certain vendor related payments of approximately £400,000.
Data Sound has been acquired on a cash free/debt free basis with net assets of approximately £100,000. No deferred consideration is payable after completion.
Following completion, Data Sound will be integrated within the MSS Group and it is expected that this will yield significant administration cost savings. The principal vendor will not be continuing with the Group and all related costs will cease at completion.
The majority of Data Sound's sales are delivered on a contracted basis with contracts ranging between 1 and 3 years. Increasingly, customers recognise that best practice compliance with Health & Safety requires a continuous process and the majority of renewals are being arranged on a three year basis. The operational management team of Data Sound will be continuing with the business.
The Board of MSS believes that the transaction will be materially earnings enhancing.
Pre-close Trading Update
The results for the year ended 31 March 2010 will show a material loss, reflecting the closure costs of the loss making, legacy contracting units and the restructuring costs arising from the recent Building Services acquisitions. These acquisitions are in pursuit of the Group's strategy to create a leading integrated Facilities Management and Building Services business within the UK.
The Board is pleased to confirm that the recent acquisitions have been rapidly integrated and current trading is meeting management expectations.
Commenting on the acquisition, Chief Executive, Simon Beart said:
"Data Sound has an impressive business model that delivers high levels of customer service. We expect to acquire further operations in the areas of legal compliance for our Building Services clients".
FOR FURTHER INFORMATION, PLEASE CONTACT:
| Managed Support Services plc: |
|
| Simon Beart, Chief Executive | 01483 735703 |
| Piers Wilson, Finance Director |
|
| Cenkos Securities plc: |
|
| Camilla Hume | 020 7397 8900 |
| Stephen Keys |
|
| Buchanan Communications: |
|
| Richard Darby | 020 7466 5000 |
| Nicola Cronk |
|