Final Earn-Out Payment

13 Sep 2007 07:01

First Artist Corporation PLC13 September 2007 First Artist Corporation plc ("First Artist" or "the Group") Final Earn-Out Payment Optimal Wealth Management Limited First Artist Corporation plc, the integrated marketing, sport and entertainmentmanagement group, is pleased to announce that its wealth management company,Optimal Wealth Management Limited ("Optimal") has exceeded the second and finalset of financial performance targets detailed under the terms of the acquisitionagreement dated 21st July 2005. As a result the sellers of the company haveachieved maximum earn-out payments. Following the earn-out payments, the totalconsideration paid is £3 million. Optimal, formerly known as ABG Financial Management Limited, has achieved a 16%like for like increase in operating profit for the year ended 30th June 2007,totalling £964,180. The increase resulted from organic growth within thebusiness and the continued benefits of integration within the First Artist groupof companies. Fisher Family Office LLP, the joint venture set up last year with financialservices firm H W Fisher & Company, has now started to produce positive income,with further growth opportunities being generated. As a result of the agreed performance targets being exceeded, the second andfinal tranche of earn-out consideration has become payable to the sellers ofOptimal ("Optimal Sellers"). This consideration is to be satisfied by (inaggregate): •The payment by the Company to the Optimal Sellers of £450,000 in cash. •The allotment by the Company to the Optimal Sellers of 391,700 new ordinary shares of 2.5 pence each in the capital of the Company ("New Ordinary Shares") on the basis of an average mid-market price of 96.10 pence per New Ordinary Share. The Optimal Sellers have agreed not to dispose of any New Ordinary Shares for a period of 12 months following allotment. Application has therefore been made for the admission of the New Ordinary Sharesto trading on the AIM market of the London Stock Exchange. Upon issue, the NewOrdinary Shares will rank pari passu with the Company's existing OrdinaryShares. It is expected that admission will become effective and that dealings inthe New Ordinary Shares will commence on 19th September 2007 ("Admission").Following Admission, the Company will have a total issued share capital of13,503,036 Ordinary Shares. Jon Smith, Chief Executive of First Artist Corporation plc, said: "Optimal has proved to be a very profitable and earnings enhancing acquisitionfor our shareholders, and with the directors of Optimal agreeing to newcontracts with the company the future prosperity of the business continues to beassured, with further opportunities for growth". - ends - Enquiries First Artist Corporation plcJon Smith, Chief ExecutiveRichard Hughes, Group Managing Director Tel: +44(0) 208 900 1818 Bell Pottinger Corporate & FinancialAnn-Marie Wilkinson / Peter Otero Tel: +44(0) 207 861 3232 Dawnay, Day Corporate Finance LimitedDavid Floyd Tel: +44(0) 207 509 4570 This information is provided by RNS The company news service from the London Stock Exchange