Sondrel Plc Regulatory News (SND)

7 Jul 2005 07:00

Sanderson Group PLC07 July 2005 For Immediate Release 7 July 2005 Sanderson Group plc: £1.75million Acquisition First acquisition since AIM Flotation in December 2004 Sanderson Group plc ('Sanderson'), an established provider of software and ITservices to UK commercial markets, today announces the acquisition ofProgressive Computer Systems Limited ('Progressive'), for a maximumconsideration of £1.75million. This is the first acquisition by Sanderson sinceits flotation on AIM in December 2004. Based in Batley, West Yorkshire, Progressive is a provider of browser-basedsoftware solutions, under the e-organiser brand, to mainly commercialorganisations in the UK. Progressive, which is owned by Mr Robert Davison wasfounded in 1995, currently employs 22 people, and subsequent to the acquisition,Mr Davison will continue as Managing Director. The acquisition complements theposition of Sanderson in its UK target markets and provides Progressive with thestrength of the Sanderson brand to develop new business opportunities. The total initial consideration for the acquisition is £750,000 in cash plus theissue of 375,000 ordinary shares of 10p nominal value each in the capital ofSanderson (the 'consideration shares'). The consideration shares are valued at£245,625 based on the average closing mid market price of 651/2p over the tenbusiness days preceding 7th July 2005. The consideration shares will be subjectto a twelve month period during which they may only be disposed of with theprior consent of Sanderson. An application has been made to the London StockExchange for the consideration shares to be admitted to AIM. Up to £750,000 of additional cash consideration may be payable dependent uponthe achievement of certain performance targets related to the results ofProgressive for a period ending not later than 31st October 2007. In the twelve months to 31 October 2004, Progressive achieved turnover of£1.37million (2003: £951,000) and earnings before interest and tax of £176,000(2003: £6,000). It had gross assets of £549,000 at 31 October 2004. Sandersonexpects the acquisition to be earnings enhancing in the financial year ending 30September 2006, the first year in which Progressive will contribute a fullyear's results. Commenting on the acquisition, Christopher Winn, Chairman of Sanderson, said:'We are delighted to welcome Progressive to the Sanderson Group. As our firstacquisition since flotation on AIM in December 2004, Progressive demonstratesour "Buy and Build" strategy, providing the Group with new revenue streams andmarket opportunities. We are confident that Progressive will provide asignificant contribution to the Group in the years to come.' Enquiries:Sanderson - Christopher Winn, Chairman 02476 555466Sanderson - Adrian Frost, Finance Director 02476 555466 Binns Winningtons - Paul Vann 0117 9200092 Note: The statement regarding earnings enhancement should not be interpreted tomean that earnings per share will necessarily be greater than those for the relevant preceding financial period. Not for release, distribution or publication in or into the United States,Canada, Australia, Japan and the Republic of Ireland This information is provided by RNS The company news service from the London Stock Exchange