Acquisition

5 Jun 2006 07:01

Mission Capital PLC05 June 2006 5 June 2006 MISSION CAPITAL PLC ACQUIRES KARSPACE MANAGEMENT LTD Mission Capital plc (the Company) is pleased to announce the acquisition ofKarspace Management Limited (KML), a privately owned company specialising in theprovision of car park and traffic management services to both the public andprivate sector. The acquisition is for a total maximum consideration of £2.6m, which includes anadditional £0.3m dependent on KML's results for the year ending 31 March 2007.The initial consideration payable is £1.9m, comprising £1.2m in cash and £0.7mthrough the issue of 10,370,371 new ordinary shares at 6.75p per share. The remaining consideration of up to £0.7m is to be deferred and is conditionalon two separate aspects. The first relates to the outcome of an existingcontract which, once concluded satisfactorily, will release up to £0.4m of whichup to £0.2m will be in cash and up to £0.2m through the issue of new ordinaryshares at 6.75p per share. The second is dependent on the level of adjustedaudited pre tax profit for the year ending 31 March 2007 where the maximumpayment will be £0.3m in cash. The acquisition of KML is the first by Mission Capital, the AIM listed companywhich was established with the primary objective of investing in property backedtrading businesses, property related businesses and property where activemanagement could substantially increase value. It is Mission Capital's intentionto expand its car parking business through acquisitions and organic growth asthe Company sees significant opportunities in the car parking sector. Founded in 1992 and based in Tonbridge, Kent, KML currently manages car parkingcontracts throughout the UK in both the public and private sectors, including anumber of niche Local Authority and NHS Trust contracts. For the year ended 31March 2006, KML's audited accounts show a turnover of circa £5.3m and a pre-taxprofit of £0.25m. The Company believes the pre-tax profit would have been £0.35mafter adjustment for certain items that are not expected to be incurredfollowing the acquisition. As at 31 March 2006, KML's audited net assets were£0.6m. Following the acquisition all the current management of KML will remain in placewith Mission Capital Chairman, Neil Sinclair and Managing Director, EmmaSinclair joining the KML Board. Neil Sinclair, Chairman of Mission Capital commented: "We are delighted to announce our first acquisition following our admission toAIM in December 2005. The UK car parking sector is an area we have been focusingon for some time and we see significant opportunities for growth in this sector.This complements our real estate strengths and is in line with our statedstrategy. The acquisition of KML marks Mission Capital's first steps to becominga major force in the car parking sector and we will continue to develop thebusiness further through a continued strategy of organic and acquisitive growth." Application has been made for the admission to AIM of 10,370,371 new ordinaryshares, comprising the equity element of the initial consideration. Uponadmission the new shares will rank pari passu with the Company's existingordinary shares and dealings are expected to commence on 9 June 2006. Furtherapplication for the admission to AIM of new ordinary shares comprising theequity element of the deferred consideration will be made as necessary. For further enquiries: Mission Capital plcNeil Sinclair (Chairman) Tel: 020 7917 2797Emma Sinclair (Managing Director) Tel: 020 7917 2799 Hudson Sandler Tel: 020 7796 4133Michael Sandler / Kate Hough Arbuthnot Tel: 020 7012 2000Tom Griffiths This information is provided by RNS The company news service from the London Stock Exchange