Sign In
Last checked at 
9 Jun 2010 07:00
|
Press Release |
09 June 2010 |
Brulines Group plc
(the "Group" or "Brulines")
Acquisition of Retail & Forecourt Solutions
Brulines Group plc (AIM:BRU), the leading provider of real time monitoring systems and data management services for the leisure and forecourt services sectors, is pleased to announce that it has agreed to acquire Retail & Forecourt Solutions Ltd ("RFS" or "the Company"). Based in Desford, Leicestershire, RFS is the UK market leader in fuel pump calibration, adjustment and legal verification, and also a leading provider of forecourt audit and compliance services. The acquisition will take effect from 9 June 2010.
The acquisition is to be satisfied wholly in cash, and consists of an initial earn out of 4 times EBITDA to 31 July 2010, £1,200,000 of which is payable on completion. This is followed by a further consideration of 3.5 times EBITDA for the year ending 31 July 2011, less any consideration already paid. Management accounts for RFS to 31 July 2009 show that the Company recorded an EBITDA of £212,000 on a turnover of £774,000.
RFS was established in 1995 by Managing Director and majority shareholder Michael Hollier following a senior management career in the motorway services forecourt industry. On completion, Francis Hollier, currently RFS Technical Director, will assume the role of Managing Director of RFS, reporting to Phil Maud, Managing Director of Brulines' Forecourt Service Division, whilst Michael Hollier will act as a consultant to RFS
In 2000, RFS became the first company in the UK to be accredited as pump "verifiers", although they were not able to undertake adjustments; this was the province of Trading Standards officers within the UK local council system. The step change in terms of business model for RFS came with effect from 1 January 2009, when the Weights & Measures Reform Act enabled the Company to carry out adjustments to pumps without the need for Trading Standards officers to be present.
Brulines' forecourt strategy aims to deliver a market leading, integrated toolbox of data management, analysis, and associated products and services that allow forecourt operators to optimise return on investment from their fuel stocks and the assets designed to store, control and issue fuel. This strategy has seen the acquisition of Edensure, a wet stock management business, in October 2008, the appointment of Maud as Managing Director of the Forecourt Division in September 2009 from Morrisons Supermarkets, where he had previously been Director of Petrol Forecourts for eight years, and the acquisition of ELS Ltd the gauging systems, tank lining, LPG and forecourt services business in April 2010.
Phil Maud, Managing Director of Brulines' Petrol Forecourt Services Division said: "This acquisition sees the Group continuing to refine our strategy and offering for the forecourt industry. Over-dispensing pumps can cost forecourt retailers thousands of pounds a year in fuel given away. Our state-of-the-art Edensure wet stock loss analysis is able to identify this over-dispensing quickly and accurately, and now with RFS as part of our Group we can offer forecourt operators an integrated and responsive solution of analysis, identification, and on-site correction.
Commenting on the proposed acquisition and appointment, James Dickson, Chief Executive of Brulines, highlighted: "This acquisition which will be earnings enhancing from the outset, is another important step in developing a market leading integrated solution for forecourt operators and underlines our intention to replicate in the forecourt market our success in the leisure sector.
"The opportunities for this expanded offering are significant, and we look forward to updating shareholders on our progress in the forecourt services market."
- Ends -
Enquiries:
|
Brulines Group plc |
|
|
James Dickson, Chief Executive |
Tel: +44 (0) 1642 358 800 |
|
james.dickson@brulines.com |
www.brulines.com |
|
Cenkos Securities plc |
|
|
Stephen Keys / Camilla Hume |
Tel: +44 (0) 20 7397 8900 |
|
|
www.cenkos.com |
Media enquiries:
|
Abchurch Communications |
|
|
Sarah Hollins / Joanne Shears / Mark Dixon mark.dixon@abchurch-group.com |
Tel: +44 (0) 207 398 7729 www.abchurch-group.com |
About Brulines
Brulines Group is focused on the provision of real time monitoring systems and data management services for the UK's leisure and petrol forecourt sectors. Since its admission to AIM in 2006, the Group has grown both organically and through a series of strategic acquisitions to give the Group access to key vertical markets. The Group operates two divisions which comprise five key products:
LEISURE DIVISION
|
Dispense Monitoring (DMS) |
The Group's core product, DMS, is widely used by owners and operators within the UK licensed on-trade, especially the tenanted / leased pub sector. Flow meters connected to draught beer dispense lines send data via an on-site communication panel to a secure central database. Liquid volumes by fount, draught wine or post mix are tracked as they are served, thereby helping customers to maximise sales, service and quality as well as managing their costs . DMS is installed in over 22,000 pubs and manages data for more than one in three UK pubs. |
|
i-draught (formerly BQM) |
A more recent and rapidly growing product offer is i-draughtTM, an extension of the Group's DMS, which scrutinises the quality of products running through beer lines in a bar; measuring volume, temperature, flow rate and liquid type (e.g. beer, cleaning fluid or water) at the point of dispense. i-draught is the first system to provide effective measurement of true yields on draught products. Actual dispense volumes are compared with till transactions to identify shrinkage from products given away, pilferage and wastage. i-draught measures the precise temperature of every pint as it is dispensed, the time taken to dispense each drink, and automatically identifies the liquid allowing customers to know exactly when lines are cleaned. Wherever they are, customers can stay in control through accessing their information on a secure web site. |
|
Gaming Machine Data Services
|
The acquisition of Coin Metrics in May 2007 was a strong strategic fit with Brulines' existing Machine Insite business which already provides gaming machine data management and consultancy services to operators within the pub, club and leisure markets. Customers benefit from state-of-the-art real-time data capture and reporting systems that deliver improved machine profitability and operational security. |
|
Vending Telemetry
|
The Group's subsidiary Vianet is a pan-European provider of telemetry solutions and data applications to the vending industry. Vianet provides services for all vending management needs; from operations, sales, field services, national accounts to senior management.
|
FORECOURT SERVICES DIVISION
|
UK Petrol Forecourt Data Services |
The Group's wholly-owned subsidiary, Edensure, supplies key management information to independent, multi branded owner, and supermarket petrol forecourt operators in the UK which helps reduce loss of fuel and improve profitability. Edensure provides petrol retailers with an unrivalled level of accuracy in the monitoring and management of their wet stock, using the most sophisticated analytical techniques available worldwide. |
Headquartered in Stockton-on-Tees, Brulines employs more than 240 people.
For further information, please visit www.brulines.com
Follow the stocks
