ACV Advance Visual

RNS Number:3298J
Advance Visual Communications PLC
3 September 2001



        3 September 2001

                          Advance Visual Communications plc

                              acquires XOO LTD in london

                                  Highlights

  * Advance Visual Communications plc adds to European presence with the
    acquisition of London based New Media Consultancy, xoo Ltd (pronounced
    zoo).
  * Xoo's unaudited accounts for year ended 30 April 2001 indicate turnover
    of GBP 379,000 and a loss of GBP 11,000
  * The acquisition will be satisfied initially through the issue of 4.75
    million new ordinary shares of Advance or GBP 130,000 at Advance's closing
    price of 2.75 p. This represents an initial multiple of 0.34 of xoo's
    trailing 12 months sales.
  * Additional consideration will be issued if xoo achieves certain sales
    targets during the first year post acquisition. The maximum potential
    additional consideration is 4.75 million shares of Advance upon achieving
    sales of GBP 1,200,000.
  * Acquisition strengthens Advance's position as a leading European
    Internet Professional Services provider and provides additional consulting
    capacity in lucrative UK market.
  * Synergies support the Group's pioneering centralised production
    structure
  * Advance Visual Communications plc now operates from six sales locations
    and two production centres offering Europe wide reach.


        Advance Visual Communications plc, ("Advance" or the "Company"), the
        AIM listed Internet Professional Services (IPS) provider, announces
        today that it has purchased London based xoo Ltd in an all paper
        transaction.

        Xoo has been acquired for GBP 130,000 to be satisfied by way of issue
        of 4,750,000 new Ordinary shares at Thursday's closing price of 2.75p
        per new Ordinary share. In addition, there is a deferred consideration
        of up to 4,750,000 new Ordinary shares if sales exceed GBP 1,200,000
        within the first year post acquisition.

        Advance's distinctive operational structure is designed to offer
        operational efficiencies and higher margins through centralised
        production facilities and localised sales offices. This highly
        scaleable operational structure fits with xoo's model of outsourcing
        production. Integration will be efficient and redundancy free as
        previously outsourced production work will now be handled by Advance's
        strong Internet and wireless production centre in Sophia Antipolis,
        South of France.

        Massoud Amiri, Chief Executive Officer, Advance Visual Communications,
        said:

        "This acquisition has added a strong set of clients to our already
        expanding customer base, including Fantasy League, Traderserve, Camden
        Borough Council and Tencel. We are pleased to welcome the xoo team to
        Advance, their experience and focus on consulting will take advantage
        of the strong leads pipeline that Advance has built. Xoo, coupled with
        our five other sales offices and two production centres, has made us
        firmly established in Europe's three largest technology services
        markets: UK, France, Germany as well as our presence in Switzerland."

        "We do not anticipate any further acquisitions in the near future. Our
        primary objective is rapid revenue growth from our six sales offices,
        which will be a significant improvement over the two main sales
        offices that generated the bulk of our business in the last fiscal
        year. Furthermore, due to numerous cost cutting initiatives, Advance
        has significantly fewer employees despite tripling the number of our
        sales offices. We have become much more efficient."

                                       - ends -



        About Xoo Ltd
        www.xoo.co.uk

        Xoo is a Internet consultancy founded in 1998. Following a
        restructuring early this year, the team was reduced from 14 at its
        peak to a core team of 5 concentrating on the consulting side of the
        business. The group also boasts proven wireless capability. xoo has
        worked with diverse and prestigious clients including British Airways,
        Poptones, Camden Borough Council, Tencel and Traderserve. xoo
        outsourced most of of their production until now. Unaudited accounts
        for the fiscal year ended 30 April 2001 show the company made a loss
        of GBP11,000 based on turnover of GBP 379,000.

        About Advance

        www.advancevisual.com

        Advance Visual Communications plc was admitted to the Alternative
        Investment Market (AIM) part of the London Stock Exchange in November
        2000 and trades under the stock symbol ACV. It aims to create a
        leading pan-European Internet Professional Services (IPS) company
        through a combination of acquisition and organic growth. Advance
        currently has five sales and consultancy operations across the UK,
        France, Germany and Switzerland. In contrast, the company's production
        facilities are centralised in two locations, Sophia Antipolis, South
        of France, for Internet and wireless developments and in Bradford, UK,
        for Digital Video and Multimedia productions. Advance specialises in
        helping companies harness the Internet to enhance margins and bring
        their businesses closer to their customers, suppliers and channels.
        The company also provides a complete range of Multimedia and Digital
        Video solutions.

        For further information:

        Massoud Amiri, Chief Executive Officer

        Advance Visual Communications plc                     020 7830 9740

        Billy Clegg/Charlotte Fisher

        Bell Pottinger Financial                              0207 353 9203

Advance Visual Communications (LSE:ACV)
Historical Stock Chart
From Jun 2024 to Jul 2024

Advance Visual Communications (LSE:ACV)
Historical Stock Chart
From Jul 2023 to Jul 2024