NBI.L Regulatory News (NBI)

18 Sep 2007 07:01

Northbridge Industrial Services PLC18 September 2007 FOR IMMEDIATE RELEASE 18 SEPTEMBER 2007 Northbridge Industrial Services Plc. ("Northbridge" or "The Company") ACQUISITION OF 51% OF THE SHARE CAPITAL OF RDS (TECHNICAL) LTD Northbridge Industrial Services Plc, the industrial services and rental company,is pleased to announce the acquisition of 51% of the issued share capital of RDS(Technical) Ltd. ("RDS") for a total consideration of £650,000. RDS is a Jersey registered company which conducts the majority of its activitiesthrough a branch office in Baku, Azerbaijan. Its principal business is toprovide generators and associated equipment by way of hire, sale and service tothe oil and gas industry in the Caspian region. It was formed in 1994 by SteveArmstrong, the majority shareholder of RDS following the break up of the formerSoviet Union and the establishment of the independent state of Azerbaijan. Ithas been the agent for Crestchic in the area since 2001. In the unaudited accounts to 31 March 2006, RDS had turnover of £1,054,242,profit on ordinary activities before UK taxation of £279,197 and net assets(including cash balances of £567,429) were £1,273,739. The initial purchase of51% of the shares for a consideration of £650,000 represents 51% of the netassets as at 31 March 2006. Net assets at the 31 March 2007 were £1,474,482. Northbridge has the option to purchase the remaining 49% of RDS on the 31 March2008. The price will be determined on a multiple of the audited profits beforetaxation of RDS for the year ending 31 March 2008, subject to a maximum price tobe paid for 100% of RDS of £1,800,000. This level will be achieved if theprofits before taxation of RDS are £328,000 in the year ending 31 March 2008. RDS will be acquired by Northbridge (Middle East) FZE, a recently incorporatedwholly owned subsidiary of Northbridge, which has been established in the JebelAli Free Zone in Dubai, UAE. This acquisition will help to further Northbridge'sstrategy to acquire and develop companies which sell and hire industrialequipment. In addition it will enable our newly formed subsidiary in Dubai toestablish an oil and gas business in the Middle East and Caspian region with abroader range of equipment available for hire and sale. Consideration for the initial shareholding will be paid out of the Group'sexisting facilities and it is anticipated that RDS will make a positivecontribution to the Group in 2008. About Northbridge: Northbridge Industrial Services was incorporated for the purpose of acquiringcompanies that hire and sell specialist industrial equipment supplying anon-cyclical customer base including utility companies, the public sector andthe oil and gas industries. In particular it will seek to acquire specialistbusinesses that have the potential for expansion into complete outsourcingproviders. For further information Northbridge Industrial Services Plc.Eric Hook, Chief Executive 07702 831110 Buchanan CommunicationsCharles Ryland / James Strong 020 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange