28 Apr 2011 12:15
Press Release | 28 April 2011 |
Motivcom plc
("Motivcom" or "the Company")
Acquisition of Allsave Limited and My Family Care Vouchers Limited
Motivcom plc (AIM:MCM), a leading business services group offering marketing communications, events, motivation and incentive expertise to major blue-chip corporate clients, announces that it has today completed the acquisition of Allsave Limited ("ALL") and My Family Care Vouchers ("MFCV") which are companies related to each other and are together referred to as Allsave. Allsave specialises in providing tax efficient childcare vouchers to UK companies.
Motivcom has paid an initial cash consideration of £1,300,000 for the entire issued share capitals of Allsave, which has been funded from its net cash balances. Additional deferred consideration of up to £925,000 in aggregate is payable in cash subject to Allsave achieving specified levels of gross profit in each of the years ending 31 March 2012, 2013 and 2014. Additionally, should Allsave's net tangible assets be in excess of £135,000 at completion, Motivcom will pay additional consideration amounting to the excess in cash. The vendors continue with the Allsave business which will remain as a separate brand within the Employee Benefits division of Motivcom's subsidiary, P&MM Limited.
Allsave reported turnover and profit before tax for the year ended 31 March 2010 were £932,934 and £283,619 respectively. Comparative figures for the year ended 31 March 2009 were £742,344 and £172,578 respectively. At 31 March 2010 Allsave had tangible net assets of £137,399. The directors anticipate that Allsave will enhance Motivcom's earnings for the year ending 31 December 2011 and beyond.
Commenting on the acquisition, David Lebond, Executive Director for Motivcom plc and responsible for the Company's Sales Promotions and Employee Benefits division, said:
"This is an excellent opportunity to strengthen our position in the childcare voucher sector by acquiring another well-established leading name in this sector. Allsave's strength in the SME sector will enlarge the market in which we operate. In addition it supports our Group strategy to invest in certain high potential product areas and allows us to deliver the combined experience and infrastructure to both our childcare voucher brands."
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For further information:
Motivcom plc | |
Sue Hocken | Tel: +44 (0) 845 053 5529 |
sue.hocken@motivcom.com | www.motivcom.com |
Grant Thornton Corporate Finance | |
Philip Secrett / Daniela Amihood | Tel: +44 (0)207 383 5100 |
philip.j.secrett@gtuk.com | www.gtuk.com |
Numis Securities Limited | |
David Poutney/James Serjeant | Tel: +44 (0)207 260 1000 |
Media enquiries:
Abchurch | |
Joanne Shears | Tel: +44 (0) 20 7398 7700 |
joanne.shears@abchurch-group.com | www.abchurch-group.com |