Parkmead Regulatory News (PMG)

27 Jan 2005 07:00

Interregnum PLC27 January 2005 27 January 2005 INTERREGNUM PLC Acquisition of AVM and Trading Update Interregnum plc ("Interregnum"), the technology merchant bank, announces theacquisition of Audio Visual Machines ("AVM") and provides a trading update forthe first half of FY2004-5 (the six months ended 31 December 2004), whichincludes a more than 3-fold increase in revenues. Full interim results for thisperiod are planned to be released at the end of February 2005. Acquisition of AVM Interregnum has today acquired 82.35% of the equity of AVM for a considerationof £500,000, comprising £200,000 in cash to be funded from existing resourcesand £300,000 in loan notes. The loan notes carry interest at 6% per annum andare redeemable in two tranches, 12 months and 18 months from the date of theirissue. AVM, established in 1990, is an audio visual solutions provider. The companydesigns, supplies, programs and supports complex audio visual systems rangingfrom boardroom presentation solutions to IP-based video conferencing networks.AVM's clients include BP, BNP Paribas, EDS, Glaxo SmithKline and PwC. For the 12 months to 31 March 2004, AVM generated revenues of £2.3m and profitbefore tax of £29,000. Management accounts for the nine months to 31 December2004 indicate that AVM has traded profitably during this period. This transaction, which is expected to be earnings enhancing for Interregnumduring the second half of FY2004-5, underlines Interregnum's strategy of takingprincipal investment positions. Trading Update Interregnum's consolidated revenues for the six months ended 31 December 2004showed an increase of more than 370% to £3.3m (1H 2003-4: £0.7m). This reflectsincreased revenues from the Interregnum advisory business and from itssubsidiary Yospace, together with the full consolidation of the revenues ofCellular Design Services (CDS) which was acquired in February 2004. Consolidated operating losses were reduced to £719,000 (1H 2003-4: loss of£799,000). Operating cash flow for period improved to -£614,000 (1H 2003-4: -£928,000), andthe cash balance at 31 December 2004 was £1.915m (31 December 2003: £1.1m) Highlights from the three primary components of Interregnum's business were asfollows: Interregnum Advisory BusinessAdvisory revenues increased to £453,000 (1H2003-4: £290,000), but this does notyet show the full impact of the 7 new people hired during the period. On 16December Interregnum acted as a placing agent alongside Collins Stewart in the£5.6m placing announced by Screen plc (AIM: SEN/L). Investment PortfolioThe investment portfolio continued to perform well. New investments into theportfolio increased to £458,000 (1H 2003-4: £125,000). These included £250,000in Future Route, a supplier of software which helps financial institutionsdetect and prevent credit card fraud, and £150,000 in Oilcats, a provider ofSupply Chain Content Management software and services to the Energy sector. There were no significant realisations from the investment portfolio (1H 2003-4:£181,000), and the portfolio (net of provisions) was valued at £3.051m (31December 2003: £2.499m) Subsidiary Companies CDS completed its first full trading period since its acquisition byInterregnum, generating revenues (for the six months to 31 December 2004) of£2.313m, net before tax profits of £86,000, and net positive cash flow of£173,000. CDS has focused on higher-margin, complex wireless infrastructurework, leading to deeper business relationships with operators such as O2, 3,T-Mobile, and BT, with equipment vendors such as Nokia, and with large propertyowners such as BAA. Ken Olisa, Interregnum Chairman and Chief Executive commented: "We are pleasedwith the progress of all parts of our business. CDS and Yospace are now makingsignificant contributions to group revenues, and we expect AVM to continue thistrend. The investment portfolio generally is performing well, and we areparticularly pleased with the speed at which the new members of Interregnum'sadvisory team have been integrated into the business; we expect them to make asubstantial contribution to both advisory revenues and deal flow during thesecond half of FY2003-4 and beyond." - Ends - Contacts: Interregnum 020 7494 3080Ken Olisa, Chairman and CEO Merlin (PR advisers to Interregnum) 020 7653 6620Vanessa Maydon 07802 961 902Rebecca Penney 07795 108 178 Notes to Editor Interregnum plc (www.interregnum.com), is an AIM-listed technologymerchant bank (symbol: ITR). Established in 1992, it provides advisoryservices including corporate finance, IP exploitation and commercial duediligence to corporates, government, technology entrepreneurs, advisors andinvestors. In addition it invests in technology companies, focused primarilyon principal equity stakes although, in some cases taking minority equitystakes. This information is provided by RNS The company news service from the London Stock Exchange