TP Group PLC Acquisition (1716W)
February 07 2017 - 1:00AM
UK Regulatory
TIDMTPG
RNS Number : 1716W
TP Group PLC
07 February 2017
07 February 2017
TP Group plc
("TP Group" or the "Company" or the "Group")
Acquisition of ALS Technologies and Flexible Software
Solutions
Acquisitions enhance existing offerings into defence, commercial
and aerospace sectors
TP Group (AIM: TPG), the specialist services and engineering
group, announces that it has reached an agreement to acquire the
entire issued share capital of ALS Technologies Ltd ("ALS") and
Flexible Software Solutions Ltd ("FSS") for a combined initial
consideration of GBP1.25 million, funded from the Group's existing
cash resources, on a debt free cash free basis. A further
consideration of up to GBP1.5 million will fall due on delivery of
profit related earn-out targets over the first 20 months from
completion. The maximum consideration payable for ALS and FSS,
assuming all earn-out targets are met, is GBP2.75 million.
ALS, based in Wincanton, Somerset, provides systems engineering
and assurance capability for mission support, flight control,
combat systems and tactical information systems in the aerospace
and defence markets. FSS, also based in Wincanton, develops
safety-critical software for the defence and commercial
sectors.
The TPG Board believes that the acquisition of both ALS and FSS
will deliver significant synergy benefits to the group, which
include:
-- extending TPG's existing services business activity in the
provision of specialist resources in systems engineering and
technical project support to defence and other sectors;
-- the addition of software solutions will enhance and strengthen TPG's existing capabilities;
-- access to additional strategic customers and programmes; and
-- the ability to cross sell new capabilities to existing TPG customers.
ALS reported revenues of GBP4.3 million and profits before tax
of GBP0.5 million in the financial year ended 30 September 2016. As
at 30 September 2016, ALS had gross assets of GBP0.8 million. FSS
generated revenues of approximately GBP0.2 million and was
approximately breakeven in the year ended 31 December 2016. As at
31 December 2016, FSS had gross assets of approximately GBP0.1
million.
Mr Steve Lafferty and Mr Steve Bray, directors of both
companies, will remain with the businesses and continue to lead
activities and operations in Wincanton.
The purchase consideration will be financed from TP Group's
existing cash resources. The TPG Board believes that the
acquisition of ALS and FSS will be accretive to Group earnings in
the year of completion.
Phil Cartmell, Chief Executive of TP Group, commented:
"We are delighted to have agreed the purchase of ALS and FSS and
that the existing directors Steve Lafferty and Steve Bray will stay
with the businesses post acquisition. The enlarged Group will bring
critical mass to our services business and should stimulate growth
in both ALS and FSS, as they benefit from greater market reach and
presence delivered by TPG.
"I look forward to welcoming our new colleagues to the TPG team
and driving continued growth and value in the coming years."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact:
TP Group plc Tel: 01753 285 810
Phil Cartmell, Chief
Executive Officer
Derren Stroud, Chief
Financial Officer
www.tpgroup.uk.com
Cenkos Tel: 020 7397 8980
Mark Connelly / Callum
Davidson
www.cenkos.com
Vigo Communications Tel: 020 7830 9700
Jeremy Garcia / Fiona
Henson
www.vigocomms.com
Notes to Editors
TP Group designs and develops advanced technologies, engineers
complex equipment and systems, and provides support throughout
their operational life. The Company's shares have been traded on
AIM since July 2001.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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