Progility Regulatory News (PGY)

1 Feb 2006 12:40

ILX Group PLC01 February 2006 For Immediate Release 1 February 2006 ILX Group PLC £1.1 million Acquisition of Customer Projects ILX Group plc ('ILX'), the AIM quoted vocational education and training company,announces that it has agreed to acquire the entire issued share capital ofCustomer Projects Ltd ("Customer Projects") for a maximum consideration of £1.1million. Customer Projects is one of just six Accredited Consulting Organisations forPRINCE2. It is led by Eddie Borup, ex-Head of Projects at Cable & Wireless whohas many years of experience in consulting. Eddie will remain with the companyas Managing Director of the Customer Projects division. Customer Projectscustomers include Vodafone, Ericsson, Cable and Wireless, The Capital MarketsCompany, Claire's Accessories, Leeds City Council, Chester City Council, WestMidlands Fire Service, Thames Valley Police, and a major global non-profitmaking organisation. This acquisition, combined with the multimedia training software offering fromKey Skills and the classroom training offering from Mindscope, puts ILX in thepre-eminent position of being the only company in the PRINCE2 training space tobe able to offer a full service offering of computer based training, classroombased training, and a PRINCE2 consultancy service. Initial consideration of £300,000 is to be satisfied by £100,000 in cash and theissue of 189,934 new ordinary shares, which will be subject to a 12-monthlock-in period. Deferred consideration of up to £300,000, calculated as £100,000plus the value of Customer Projects' net assets on completion, is to be made incash following the agreement of completion accounts. Admission of the 189,934 new ordinary shares is expected to take place on 2February 2006. Following this the Company will have 12,833,294 ordinary sharesin issue. The earn-out consideration of up to £500,000 is based on meeting profit targetsfor the years ended 31 March 2006 and 31 March 2007. The full earn-out paymentwill be made in the event that Customer Projects' operating profits for the yearended 31 March 2007 meet or exceed £263,000. For its last full year ended 31March 2005, Customer Projects delivered an operating profit of £142,810 onturnover of £574,581. For the period ended 15 January, management accounts showturnover of £447,000, an operating profit of £134,000, and net assets of£150,000. The earn-out consideration is to be satisfied in cash or new ordinary shares atILX's discretion 3 months following the year end. Ken Scott, CEO of ILX Group, said: "We are very pleased to welcome Customer Projects and Eddie Borup to the ILXGroup. Not only does the business complement ILX but Eddie Borup is a veryexperienced and innovative consultant and brings a wealth of knowledge withinthe area of project management best practice. "This is an important move as the PRINCE2 market place is beginning to recognisethe need for not just qualifications but also for guidance in implementing theprinciples of PRINCE2. This acquisition makes ILX the only one of its kind tooffer this full service and we are determined to continue to lead in the projectmanagement sector through the provision of training leading to qualificationstogether with professional implementation and consultancy services." For further information, please contact: ILX Group plc Binns & Co PR Ltd Charles Stanley SecuritiesKen Scott, Chief Executive Paul McManus Philip DaviesTel: 020 7371 4444 Tel: 020 7493 3716 Tel: 020 7953 2457 Mob: 07980 541 893http://www.ilxgroup.com This information is provided by RNS The company news service from the London Stock Exchange