Team Regulatory News (TEAM)

5 July 2021

TEAM PLC

Acquisition of JCAP Limited

 The leading Jersey based Cash Management Company

TEAM plc ("TEAM") the recently listed wealth, asset management and complementary financial services group, is pleased to announce that on 2 July 2021it acquired JCAP Limited ("JCAP"), trading as JCAP Treasury Services, a leading Jersey based provider of cash management services, focused on improving the return and mitigating the risks associated with the management of cash for institutions, professional advisers, trustees and high net worth individuals. JCAP has over £1.3 billion in assets under advice.

The total net consideration payable is up to £2.95 million, of which £2,212,501 will be paid in cash and £737,499 in newly issued TEAM shares. The net tangible current assets of the business, of approximately £700,000 are being acquired on a pound for pound basis, in addition to the total net consideration.

The payment at completion is for £1,659,376 in cash, funded from existing company resources, with £553,124 in TEAM shares, being 740,461 new TEAM shares at an issue price of 74.7pence per share.

The deferred consideration payment of up to £735,500 is payable depending upon JCAP meeting certain performance targets in the period up to 31 December 2021, and payable by 31 March 2022, of which up to £553,125 is payable in cash and £184,375 in TEAM shares, based on the closing price in the 10 business days prior to the time of issue.

Highlights

· JCAP is a well-established and profitable Jersey business, and has been known to Mark Clubb, Executive Chairman of TEAM, since its establishment in 2010

· JCAP provides a range of cash management services to institutions, professional advisers, trustees and high net worth individuals

· It has long-term partnerships established with leading global providers of treasury management and foreign exchange services, providing diversification of income sources, and significant opportunities for high profit margin growth

· In the unaudited accounts for the year to 31 December 2021 JCAP generated revenues of £1,002,160 and made a post-tax profit of £374,972. Net assets at that date were £918,282.

The acquisition has a compelling strategic rationale:

· Fits with TEAM's strategy to acquire wealth, asset management and complementary financial services business

· Clear synergistic revenue growth opportunities through providing cash management services to the TEAM client base, and through the potential to launch cash management products through the regulated fund business of TEAM

· Builds scale in the home market of Jersey

Material financial benefits expected from the acquisition:

· A significant increase in the revenues of the group, with the addition of over £1.3 billion in assets under advice, and a significant step for TEAM towards becoming cashflow positive

· A combination of expected revenue and cost synergies, through client referral, co-locating in TEAM's offices, and through using TEAM's governance and control infrastructure

· The net consideration represents a P/E multiple of 7.9 times the 2020 earnings

Mark Clubb, Executive Chairman of TEAM, commented:

"At the time we listed we told our shareholders that we had a well-researched and solid acquisition pipeline and that we would work through that pipeline with rigour and focus. The acquisition of JCAP is the first evidence of that. We continue to execute on our acquisition strategy as well as develop more accretive opportunities.

JCAP is a natural fit with our plans for the development of TEAM. Cash management is a complementary service for many of our current and future clients, and JCAP is the leading provider of these service in the Channel Islands. We are currently in a period of historically low interest rates where yield optimisation on cash balances generates minimal returns. Against this market background JCAP is a highly profitable business, and if interest rates increase, as seems likely, this will add significant momentum to profits as clients seek out JCAP's services to improve returns and risk management on their and clients' cash holdings."

Application will be made to the London Stock Exchange for 740,461 ordinary shares in TEAM, to be issued pursuant to the acquisition, to be admitted to trading on AIM. The ordinary shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of the company. It is expected that Admission will become effective and dealings in the 740,461 ordinary shares will commence at 8.00 a.m. on or around 8 July 2021.

Following Admission, taking account of the above issue of ordinary shares the Company's issued share capital will comprise 17,299,795 ordinary shares. From Admission, the figure of 17,299,795 may be used by Shareholders as the denominator for calculations to determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules.

TEAM plc

Mark Clubb / Matthew Moore

Telephone: +44 (0) 1534 877210

Hannam & Partners

(Financial Adviser to TEAM)

Giles Fitzpatrick / Richard Clarke / Ernest Bell

Telephone: +44 20 7907 8500

Canaccord Genuity Limited

(Nominated Adviser and Broker to TEAM)

Bobbie Hilliam / Alex Aylen / Jeremy Grime

Telephone: +44 20 7523 8000

Novella Communications

(Financial Public Relations)

Tim Robertson / Fergus Young

Telephone: +44 20 3151 7008

Information on TEAM

TEAM plc is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM plc's core skill of providing investment management services. Growth will be achieved via targeted and opportunistic acquisitions, through team and individual hires, through collaboration with suitable partners, and organic growth and expansion.

www.teamplc.co.uk