Placing and Acquisition of Scotts of Putney (5724R)
November 07 2011 - 1:00AM
UK Regulatory
TIDMHMLH
RNS Number : 5724R
HML Holdings PLC
07 November 2011
HML Holdings Plc
("HML" or "The Company")
Placing and Acquisition of Scotts of Putney
HML Holdings Plc (AIM: HMLH) a leading provider of property
management, insurance and ancillary services to residential
property blocks, announces that it has acquired the business and
assets of Scotts of Putney ("Scotts"), for a total consideration of
GBP1.9 million (the "Acquisition"). The Company has raised GBP0.3
million through the issue of 2,857,200 new ordinary shares by way
of a placing with new and existing institutional shareholders at a
price of 10.5 pence per new ordinary share ("Placing Shares") (the
"Placing").
Scotts is an independent firm of Managing Agents and Surveyors,
established in 1976. The business specialises in residential
lettings and block management with their associated professional
property services. Scott's current portfolio consists of over 3,000
units under management, situated mainly in Central and West London.
The team of experienced surveyors, property managers and support
staff will become part of HML Shaw Limited, HML's Richmond based
subsidiary. The business will remain in its two offices in Putney
retaining the Scotts brand and in due course becoming HML
Scotts.
Scotts had unaudited revenues of approximately GBP1.8 million
with normalised profits of GBP300,000 for the year ended 31
December 2010. The acquisition is expected to be immediately
earnings enhancing and provides substantial opportunities for HML
to cross sell its insurance and ancillary services. This latest
acquisition forms part of HML's ongoing expansion programme,
providing the Company with a strengthened presence in prime
London.
The consideration for the acquisition will be satisfied by
GBP1.3 million in cash and GBP0.2 million in new ordinary shares of
1.5p in HML on completion. The remaining GBP0.4 million of the
consideration is deferred over three years and will be payable in
cash, subject to certain performance conditions.
Application has been made for the Placing Shares to be admitted
to trading on the AIM market and admission is expected at 8.00 am
on 9 November 2011. Following the Placing, the total issued share
capital of the Company will be 34,401,566. The Company holds no
ordinary shares in treasury. Therefore, following the Placing, the
total number of voting rights in the Company will be
34,401,566.
Pursuant to the Placing, Robert Plumb, HML Chief Executive
Officer has subscribed for 50,000 Placing Shares. Following this
transaction, Mr Plumb's total beneficial interest in the Company is
1,934,067 ordinary shares, representing approximately 5.6 per cent.
of the issued share capital of HML as enlarged by the Placing. In
addition, James Howgego, HML Finance Director, has subscribed for
400,000 Placing Shares. Following this transaction, Mr Howgego's
total beneficial interest in the Company is 1,050,000 ordinary
shares, representing approximately 3.1 per cent. of the issued
share capital of HML as enlarged by the Placing.
Commenting on the acquisition, Robert Plumb, Chief Executive of
HML, said: "This acquisition is consistent with our strategy to
consolidate our presence in focused geographical areas by acquiring
and integrating businesses with strong underlying portfolios. In
Scotts we have found a partner that fulfils this criterion and has
the quality of service culture that is entirely compatible with our
own. We look forward to working with the team at Scotts to greatly
enhance our service offering in the Central and West London areas.
We are delighted to welcome Scotts to the HML group."
For further information please visit www.hmlholdings.com
HML Holdings PLC: 020 8439 8529
Robert Plumb, Chief Executive
James Howgego, Financial Director
Tavistock Communications Group: 020 7920 3150
James Verstringhe, Jeremy Carey
finnCap
Ed Frisby / Christopher Raggett - corporate finance 020 7220 0500
Simon Starr - corporate broking
This information is provided by RNS
The company news service from the London Stock Exchange
END
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