CHR Chelford

RNS Number:6767Q
Chelford Group PLC
01 September 2005

CHELFORD GROUP PLC

ACQUISITION OF AGILITY SYSTEMS FOR UP TO #3.8M



Chelford Group plc ("Chelford"), the IT supply chain software/services and SAP
solutions Group, is pleased to announce that it has acquired Agility Systems
Limited ("Agility") for a maximum consideration of up to #3.8 million.



Agility is an IT software and services business which specialises in Supply
Chain execution and Warehouse Management systems integrating to ERP systems,
including GEAC, J D Edwards and SSA within the consumer packaged goods and
transport and logistics markets. Agility customers include Exel Logistics,
Morphy Richards, Sara Lee, Courtaulds and BAE Aerospace.



Agility has developed a significant capability in RF (radio frequency) data
capture systems and in RFID applications (radio frequency identification),
particularly within asset tracking and supply chain applications.  Agility is a
Premier Honours Partner of Intermec, the leading RF and RFID hardware
manufacturer, and was Intermec's first RFID approved partner in the UK.  A new
subsidiary, RFID Solution Centre Limited, has been formed to develop the
potential of Agility's RFID consultancy services and integration software.   The
first RFID order has been received from GeoPost, the express parcels delivery
service.  Agility employs 23 staff in its Darlington offices.  Kevin McDaid,
Managing Director of Agility, will remain with the enlarged Group.



Agility's business complements Chelford's existing SSI and SAP Divisions and
adds additional supply chain execution and warehouse management systems and RFID
capabilities to the Group's existing product and service portfolio.  In
particular, there is potential to develop Agility's RFID activities and the
Intermec relationship and to establish the new RFID Solution Centre business as
the RFID delivery arm for the Group's SSI and SAP Divisions.  The acquisition of
Agility offers the enlarged Group the potential for further growth in new supply
chain sectors, with the additional benefits of a strong position in the emerging
market for RFID applications and cross-selling opportunities within the enlarged
Group.



In the year to 31 December 2004, Agility's turnover was #2.55 million and profit
before taxation was #427,000.  Net assets at 31 December 2004 were #673,000.  At
completion, Agility had a cash balance of approximately #550,000.



The initial consideration has been satisfied as to #1.8 million in cash and
486,815 new Chelford ordinary shares, valued at #1.2 million at the mid-market
closing price on 30 August 2005 of 246.5 pence.  Further deferred consideration
of up to #0.5 million and #0.3 million in cash will be made, subject to the
performance of Agility, in the financial years ending 31 December 2005 and 2006
respectively.  The new ordinary shares being issued to the vendors of Agility
will be subject to a lock-in for twelve months from the date of acquisition.



Application has been made to the London Stock Exchange for the 486,815 new
ordinary shares to be admitted to trading on AIM. It is expected that Admission
will become effective and dealings in the new ordinary shares will commence on 1
September 2005.



Chelford's Chief Executive, Trevor Lewis stated: "Agility is an excellent fit
with Chelford's existing activities and conforms to our strategy of acquiring
complementary companies with good organic growth potential.  Agility extends the
Group's reach within the ERP software applications arena and adds RFID
capability at a time when a strong upsurge in demand for this technology is
expected within the supply chain and distribution market in which the Group has
a strong presence.  We expect Agility to be earnings neutral in 2005 and
significantly earnings enhancing in 2006."



For further information, please contact:


Trevor Lewis, Chief Executive                          01256-685400

Steve Liebmann or Susan Scott at Bankside              020-7367-8888






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQEAKPFDDNSEFE

Chelford (LSE:CHR)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024

Chelford (LSE:CHR)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024