STP.L Regulatory News (STP)

5 Mar 2007 07:01

Spiritel PLC05 March 2007 Embargoed until 07.00, 5 March 2007 SPIRITEL PLC ("Spiritel" or "the Company") ACQUISITION OF ASHLAND GROUP AND PLACING Spiritel plc, (AIM:STP) the telecommunications services company, is pleased toannounce the acquisition of Ashland Group Limited ("Ashland") for a totalconsideration of £3.7 million after deducting cash balances acquired of £0.2million. Highlights •Ashland, based in Wigan, is a leading independent provider of IP-based telecommunications solutions to UK businesses •Ashland's client base is centred on the UK's hospitality industry and includes Marriott Hotels and Resorts, Whitbread plc and Spirit Group. Ashland is the market leader in this sector having equipped some 40,000 hotel rooms throughout the UK and Ireland. •In the year to 31 December 2005, Ashland recorded profit before tax of £0.57 million on sales of £4.0 million. Performance in 2006 is expected to be significantly ahead of the prior year. •Anthony Vose, Ashland's founder and Managing Director, will join the Board of Spiritel plc as Managing Director of Spiritel Retail. •Fully subscribed share placing of 20.4 million new ordinary shares at 2p per share to raise £408,000. •Third acquisition since the appointment of the new management team. The previous two, CallPlan Limited and Networks Direct (UK) Limited, added £1.9 million in annual sales and more than £0.6 million in earnings Commenting on the announcement, Alastair Mills, Chief Executive of Spiritelsaid: "This is a transformational acquisition for Spiritel. It is our thirdacquisition during this financial year and is a significant milestone in the newmanagement team's strategy for Spiritel to deliver shareholders value. Ashlandwill deliver significant earnings enhancement to the Spiritel Group whilstexpanding our customer base and providing additional routes to market for ourvoice and data products and services. The enlarged group will give us theability to offer both existing and potential customers a powerful portfolio ofIP-based solutions that meet their requirements in an evolving communicationsmarket." Anthony Vose, Managing Director of Ashland added: "The transaction represents anexciting opportunity for both companies. By combining our complementary skillsand product sets, we will be uniquely placed to provide a broad range of costeffective communications solutions and services that will add value for ourcustomers. Spiritel and Ashland have already worked together commercially withsuccess and I am looking forward to joining the Spiritel team and working tofurther grow the business." For further information please visit www.spiritelplc.com or contact: Spiritel plc Tavistock CommunicationsAlastair Mills Simon HudsonChief Executive Clemmie CarrTel : +44 20 7160 0100 Tel: +44 20 7920 3150 ACQUISITION OF ASHLAND GROUP AND PLACING Spiritel plc (AIM: STP) is pleased to announce the acquisition of Ashland GroupLimited ("Ashland") for a total consideration of £3.7 million after deductingcash balances of £0.2 million. The Company has also placed 20.4 million sharesat 2p per share with a number of private investors to raise £408,000 as part ofthe acquisition funding. It is anticipated that the placing shares and theconsideration shares will be admitted to AIM on 8 March 2007. In Ashland, Spiritel has acquired one of the largest providers of telecominfrastructure services to the UK hospitality industry. Ashland also supplies arange of consultancy, solution design and implementation services. Ashland hasinstalled voice, video and high speed internet access solutions in more than40,000 hotel-rooms in the UK and Ireland for Premier Travel Inn, Marriott,Spirit Group and Travelodge. Ashland strengthens Spiritel Retail's billing, technical support, installation,maintenance and customer services capabilities. Spiritel has already integratedthe recently acquired Networks Direct into Ashland. Ashland's relationships with some of the leading blue chip companies in thehospitality sector represent an opportunity for Spiritel to cross sell productsand services and further increase routes to market. Ashland brings to Spiritel acompletely new product set (including internet, wifi, PBX and telephone hardwareand maintenance) which will complement Spiritel's existing IP-based offering.The combined products and skill sets will further enhance Spiritel's evolutionas a next-generation communications services provider. Spiritel plc has multiple routes to market for its products and services, whichinclude a range of both traditional and emerging telecoms technologies.Spiritel's client base includes corporate, wholesale and retail customers serveddirectly through a value added reseller division Spiritel Retail, via webportals and through independent resellers. Anthony Vose, founder and ManagingDirector of Ashland, will become the new Managing Director of Spiritel Retailwhich includes Ashland. Anthony will also join the Board of Spiritel plc. The £3.9 million gross consideration is being satisfied by £1.65 million incash, £1.25 million in Spiritel ordinary shares (at 2p per share) and £1 milliondeferred cash payable in equal instalments after four and nine months. The cashconsideration will be funded by the share placing and debt facilities. In the year to 31 December 2005, the last year for which accounts have beenfiled, Ashland had sales of £4.0 million with profit before tax of £0.57million. In the year to 31 December 2006 Ashland is expected to significantlyexceed profits achieved in the prior year. Ashland's estimated net assets at thetime of completion were £0.2 million. Spiritel operates with two divisions: Spiritel Retail, incorporating Ashland andSpiritel Wholesale which includes 118 918, the directory enquiries service fromwhich Oxfam receives 9p from every call made. For more information please visit www.spiritelplc.com This information is provided by RNS The company news service from the London Stock Exchange