Last checked at 
13 Jul 2009 12:06
13 July 2009
LMS Capital plc ("the Company")
Investment in Updata Infrastructure UK Limited
LMS Capital plc is pleased to announce that the Company has acquired a majority stake in Updata Infrastructure UK Limited ("Updata UK") in support of a management buy-out.
Updata UK designs, builds and manages cost-effective high-capacity broadband networks for public sector organisations in the UK. Updata UK was previously owned 60% by Updata Europe A/S, a Danish company, with the remainder of the shares held by Updata UK management and other individuals.
The Company has paid £6.2 million in cash for its 53.3% interest with the balance owned by management and other existing shareholders.
For the year ended 30 June 2008 (the latest period for which audited accounts are available) Updata UK's turnover was £5.1 million and its profit before tax was £0.1 million; at 30 June 2008 it had gross assets of £4.8 million. Updata UK's unaudited management accounts for the year ended 30 June 2009 show turnover of £10.9 million and operating profit of £1.6 million. The consideration paid by the Company represents approximately 5x trailing EBITDA.
Commenting on the transaction Pieter Hooft, Managing Director UK investments, said: "We are delighted to have had the opportunity to participate in the management buy-out of Updata UK. The management of the company has instilled a culture of excellence in customer service which differentiates Updata UK from its competitors."
Under the terms of the UKLA listing rules the acquisition is a Class 2 transaction not requiring shareholder approval.
For further information please contact:
| LMS Capital plc Robert Rayne, Chief Executive Officer Martin Pexton, Managing Director Tony Sweet, Chief Financial Officer | 020 7935 3555 |
| J.P. Morgan Cazenove Limited Michael Wentworth-Stanley | 020 7588 2828 |
| Brunswick Group LLP Simon Sporborg Robin Tozer Oliver Hughes | 020 7404 5959 |
About LMS Capital
LMS Capital plc is an international investment company whose shares are listed on the London Stock Exchange. The investment portfolio comprises investments in both the US and UK, with a spread of early stage and second round technology investments, development capital and mature company buy-outs and some listed securities.
www.lmscapital.com