Released: 05/03/2007
RNS Number:2797S
Spiritel PLC
05 March 2007
Embargoed until 07.00, 5 March 2007
SPIRITEL PLC
("Spiritel" or "the Company")
ACQUISITION OF ASHLAND GROUP AND PLACING
Spiritel plc, (AIM:STP) the telecommunications services company, is pleased to
announce the acquisition of Ashland Group Limited ("Ashland") for a total
consideration of £3.7 million after deducting cash balances acquired of £0.2
million.
Highlights
-Ashland, based in Wigan, is a leading independent provider of IP-based
telecommunications solutions to UK businesses
-Ashland's client base is centred on the UK's hospitality industry and
includes Marriott Hotels and Resorts, Whitbread plc and Spirit Group.
Ashland is the market leader in this sector having equipped some 40,000
hotel rooms throughout the UK and Ireland.
-In the year to 31 December 2005, Ashland recorded profit before tax of
£0.57 million on sales of £4.0 million. Performance in 2006 is expected to
be significantly ahead of the prior year.
-Anthony Vose, Ashland's founder and Managing Director, will join the
Board of Spiritel plc as Managing Director of Spiritel Retail.
-Fully subscribed share placing of 20.4 million new ordinary shares at 2p
per share to raise £408,000.
-Third acquisition since the appointment of the new management team. The
previous two, CallPlan Limited and Networks Direct (UK) Limited, added £1.9
million in annual sales and more than £0.6 million in earnings
Commenting on the announcement, Alastair Mills, Chief Executive of Spiritel
said: "This is a transformational acquisition for Spiritel. It is our third
acquisition during this financial year and is a significant milestone in the new
management team's strategy for Spiritel to deliver shareholders value. Ashland
will deliver significant earnings enhancement to the Spiritel Group whilst
expanding our customer base and providing additional routes to market for our
voice and data products and services. The enlarged group will give us the
ability to offer both existing and potential customers a powerful portfolio of
IP-based solutions that meet their requirements in an evolving communications
market."
Anthony Vose, Managing Director of Ashland added: "The transaction represents an
exciting opportunity for both companies. By combining our complementary skills
and product sets, we will be uniquely placed to provide a broad range of cost
effective communications solutions and services that will add value for our
customers. Spiritel and Ashland have already worked together commercially with
success and I am looking forward to joining the Spiritel team and working to
further grow the business."
For further information please visit www.spiritelplc.com or contact:
Spiritel plc Tavistock Communications
Alastair Mills Simon Hudson
Chief Executive Clemmie Carr
Tel : +44 20 7160 0100 Tel: +44 20 7920 3150
ACQUISITION OF ASHLAND GROUP AND PLACING
Spiritel plc (AIM: STP) is pleased to announce the acquisition of Ashland Group
Limited ("Ashland") for a total consideration of £3.7 million after deducting
cash balances of £0.2 million. The Company has also placed 20.4 million shares
at 2p per share with a number of private investors to raise £408,000 as part of
the acquisition funding. It is anticipated that the placing shares and the
consideration shares will be admitted to AIM on 8 March 2007.
In Ashland, Spiritel has acquired one of the largest providers of telecom
infrastructure services to the UK hospitality industry. Ashland also supplies a
range of consultancy, solution design and implementation services. Ashland has
installed voice, video and high speed internet access solutions in more than
40,000 hotel-rooms in the UK and Ireland for Premier Travel Inn, Marriott,
Spirit Group and Travelodge.
Ashland strengthens Spiritel Retail's billing, technical support, installation,
maintenance and customer services capabilities. Spiritel has already integrated
the recently acquired Networks Direct into Ashland.
Ashland's relationships with some of the leading blue chip companies in the
hospitality sector represent an opportunity for Spiritel to cross sell products
and services and further increase routes to market. Ashland brings to Spiritel a
completely new product set (including internet, wifi, PBX and telephone hardware
and maintenance) which will complement Spiritel's existing IP-based offering.
The combined products and skill sets will further enhance Spiritel's evolution
as a next-generation communications services provider.
Spiritel plc has multiple routes to market for its products and services, which
include a range of both traditional and emerging telecoms technologies.
Spiritel's client base includes corporate, wholesale and retail customers served
directly through a value added reseller division Spiritel Retail, via web
portals and through independent resellers. Anthony Vose, founder and Managing
Director of Ashland, will become the new Managing Director of Spiritel Retail
which includes Ashland. Anthony will also join the Board of Spiritel plc.
The £3.9 million gross consideration is being satisfied by £1.65 million in
cash, £1.25 million in Spiritel ordinary shares (at 2p per share) and £1 million
deferred cash payable in equal instalments after four and nine months. The cash
consideration will be funded by the share placing and debt facilities.
In the year to 31 December 2005, the last year for which accounts have been
filed, Ashland had sales of £4.0 million with profit before tax of £0.57
million. In the year to 31 December 2006 Ashland is expected to significantly
exceed profits achieved in the prior year. Ashland's estimated net assets at the
time of completion were £0.2 million.
Spiritel operates with two divisions: Spiritel Retail, incorporating Ashland and
Spiritel Wholesale which includes 118 918, the directory enquiries service from
which Oxfam receives 9p from every call made.
For more 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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