PTCM.L Regulatory News (PTCM)

28 July 2015

Porta Communications Plc

("Porta" or "the Company")

Investment in Capital Access Group Limited

Porta Communications Plc, the AIM quoted international marketing and communications business, has acquired a 29.5 per cent holding in Capital Access Group Limited ("Capital Access"), a newly formed company that has acquired the entire issued share capital of Broker Profile Limited ("Broker Profile"). The acquisition is a non-cash transaction, however, Porta will provide Capital Access with certain office services for the next three and a half years and will guarantee a maximum of £2m of debt, £1m of the debt raised by Capital Access and £1m of vendor loan notes issued to fund the acquisition of Broker Profile. Any call on the guarantee will be satisfied by the issue of Porta shares at that time.

In addition, the Company will enter into a shareholders agreement with Capital Access and the other shareholders, being Richard Feigen, Kevin Lapwood, the other employee shareholders and Industrial Lending 1 SA, which will offer Porta protections as a minority shareholder. Porta will be granted a call option relating to the purchase by Porta of the remaining issued shares in Capital Access which is exercisable in four tranches following the end of the financial year ending 31 December 2017. Any additional consideration payable under the call option will be satisfied by the issue of Porta Ordinary Shares.

Porta has no obligation to purchase the remaining equity of Capital Access or to fund Capital Access or Broker Profile in the future.

Broker Profile, for the year ended 31/12/2014, reported revenue of £2.7m and pre-tax profits of £0.8m. The total consideration paid by Capital Access is £4m plus surplus cash over and above an agreed formula to represent normalised working capital. Broker Profile is a corporate communications, investor access and equity research provider that was set up in 1997 by Jonathan Gillen. It has over 70 clients ranging from FTSE100 to AIM. All of the employees of Broker Profile will remain with Capital Access after the acquisition with the exception of Mr. Gillen who will take on a consultancy role and will assist with the hand over to the new team.

Capital Access was founded by Richard Feigen and Kevin Lapwood, until recently partners at Hub Capital Partners and, respectively, the ex-Managing Director and ex-Head of Research at brokers, Seymour Pierce.

David Wright, CEO of Porta said:

"We believe the combination of investor access together with investor relations and financial public relations will be valuable services to offer to clients and will broaden Porta Group's service offering to its existing clients."

Richard Feigen of Capital Access said:

"With the expected changes in the corporate broking regulatory background in Europe and effect of technology on the way investors of all sizes receive information, the need for integrated advice on investor communications has never been greater. The tie-up with Porta will enable us to offer corporate clients a greater range of services than ever before."

Jonathan Gillen of Broker Profile said:

"I have enjoyed the challenges of building the business up but now is the right time to hand over the reins to a new team. I wish them luck in taking the business forward and it is encouraging that the Company is in good hands with an experienced team."

Enquiries:

Porta Communications Plc

www.portacomms.com

David Wright, Chief Executive

Gene Golembiewski, Finance Director

 +44 (0) 20 7680 6500

Sanlam Securities UK Limited

Simon Clements / Virginia Bull

+44 (0) 20 7628 2200

Redleaf PR - Media Enquiries

Charlie Geller / Emma Kane

+44 (0) 20 7382 4769

Capital Access Group enquires

Richard Feigen / Kevin Lapwood

+44 (0) 20 3763 3401

Notes to Editors:

Porta has two divisions:

· Communications - financial, corporate and consumer public relations, public affairs and research

· Marketing & Advertising - multi-capability marketing, brand and creative communications

The Group currently has offices in Aberdeen, Abu Dhabi, Beijing, Brisbane, Bristol, Brussels, Canberra, Cardiff, Edinburgh, Frankfurt, Hong Kong, London, Manchester, Melbourne, Singapore and Sydney.

The brands and companies it owns are: Newgate Communications, Newgate Threadneedle, PPS Group, Redleaf Polhill, 13 Communications, Publicasity, 2112 Communications and Summit Marketing Services.

Further information is available at www.portacommunications.plc.uk.