Released: 12/09/2006
RNS Number:8072I
Spiritel PLC
12 September 2006
For immediate release 12 September 2006
SPIRITEL PLC
("Spiritel" or "the Company")
Acquisition of Callplan Ltd
Spiritel plc (AIM: STP), the telecommunications services business, is pleased to
announce the earnings-enhancing acquisition of the entire share capital of the
privately held company Callplan Ltd, a sales agency that markets products and
services in the UK on behalf of Telstra, Australia's national telecoms company
and the world's thirteenth largest telco.
Under the terms of the acquisition of Callplan, Spiritel will pay initial cash
considerations of £324,000 for goodwill plus £81,000 for net assets, which
include cash balances of £127,000. The total consideration is up to £632,000,
including the £81,000 net asset payment and a performance-related earn-out
payment of up to £227,000. The acquisition will be funded through debt and the
recent issue of new ordinary shares to Wills & Co Stockbrokers, which subscribed
for 10,000,000 new ordinary shares of 1p each in the Company at 2.5p per share,
as announced on 29 August 2006.
Callplan, which sells through a network of more than 70 independent agents, was
founded in 2003 and is the only independent Telstra-branded sales channel in the
UK. Callplan has more than 170 SME and corporate clients including blue chip UK
customers and has a current run rate of £150,000 net profit per annum. In the 12
months ended 31 January 2006, Callplan reported profits before tax of £137,000.
Callplan's sales have grown strongly since launch and it is anticipated that the
acquisition will be earnings enhancing for Spiritel immediately from the time of
acquisition.
Callplan offers clients Telstra's full retail portfolio including outbound and
inbound voice, wholesale line rental, broadband, non-geographic numbers and
virtual managed data networks.
The acquisition of Callplan follows Spiritel's recently stated strategic
intention of completing a series of acquisitions to broaden the Company's routes
to market. Callplan will be part of Spiritel Retail, the Spiritel division
formed to spearhead Spiritel's planned direct-to-consumer initiatives.
Alastair Mills, Spiritel's Chief Executive, commented: "Callplan is a highly
profitable and fast-growing company and is an ideal first acquisition towards
the delivery of our strategy of gaining a direct relationship with customers.
The acquisition is immediately earnings enhancing and we look forward to
building on Callplan's growth to date."
For further information:
Spiritel plc 020 7160 0100
Alastair Mills, Chief Executive
Buchanan Communications 020 7466 5000
Mark Court
Mary-Jane Johnson
Notes for Editors:
About Spiritel plc
Spiritel plc (AIM: STP) is a telecommunications services and products company
that joined the AIM market of the London Stock Exchange in July 2004. Its
services include call termination and in addition it has developed a suite of
leading-edge VoIP products, positioning the Company to benefit from the
migration from traditional telephony to VoIP services.
For further information please visit www.spiritelplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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