TIDMMCAP
RNS Number : 7842I
Mission Capital PLC
21 June 2011
For release on RNS 0730 on Tuesday 21 June 2011
Mission Capital Plc Acquisition of Business Advisory Service
Limited
Mission Capital Plc ("Mission Capital" or the "Company"), the
holding company of Quindell Limited, a leading reselling and sales
outsourcing company with expertise in technology, telecoms,
utilities, leisure, retail and franchise, is pleased to announce
that it has acquired the entire issued share capital of Business
Advisory Service Limited ("BASL" or the "Acquisition") and its
associated companies for GBP8,200,000.
The transaction will be settled by issuing 270,000,000 Mission
Capital shares ("New Ordinary Shares") valued at 3p per share based
on the average mid market price prior to the completion date and
GBP100,000 in cash. This share price represents a 21% premium to
the admission price of the Company on 17 May 2011. The acquisition
shares have the same lock-in arrangements as the shares of the
Company's Directors.
Business Advisory Service Limited
Business Advisory Service Limited, one of the UK's leading
business price comparison companies, offering competitive business
electricity, business gas, telecoms and insurance for Businesses in
the UK. The acquisition is part of Quindell's stated strategy of
increasing its customer base to exploit cross selling opportunities
for the benefit of its clients who license its technologies, the
brands Quindell represent and their end customers.
For the year ended 31 December 2009, BASL produced revenue of
GBP0.85m with an underlying profit, excluding one-off payments, of
over GBP0.3m or 36%, which is in line with the Company's target of
35% to 40% EBITDA conversion in all key areas of the business. In
2010 management accounts show significant growth above these
historic levels. Due to this continuing growth trend and the
significant visibility of future earnings, the profit after tax for
BASL has been warranted by the Vendors to be no less than GBP1m for
the 12 month period following completion. The Directors are
confident that this GBP1m profit warranty will not be breached as
BASL has an estimated forward order book of signed contracts for
recognition in future periods, together with associated cash
payments of over GBP2.7m. In the event that a profit of GBP1m after
tax is not achieved, the Company will receive compensation from the
vendors in the form of cash or shares on a pro rata basis. Other
key highlights of the Acquisition include:
-- MAJOR AFFINITY GROUP CONTRACTS BASL has signed a number of
major Affinity Group contracts for Insurance, Utilities and
Telecoms including Uswitch, Telegraph Business Club, Simply Switch,
Money Expert, Prestige Purchasing, British Home Parks Association
and Business Matters, as well as arrangements with over 100 smaller
on-line business comparison sites which also generate
referrals;
-- SOUTH AFRICAN LOWER COST INFRASTRUCTURE BASL has a South
African associate from which it operates most of its call centre
based sales operation and back office administration functions.
This offshore lower cost infrastructure will now be leveraged by
the Company across multiple areas of the business;
-- SIGNIFICANT INVESTMENT IN CRM INFRASTRUCTURE BASL has made a
significant investment in its Customer Relationship Management
technology infrastructure to allow it to respond to leads generated
from on line businesses in a matter of minutes from remote call
centre locations anywhere in the world. This investment will now
also be integrated with the Company's own solutions and will be
leveraged on a broader basis by the Company both internally and for
sale to third parties; and
-- EASE OF INTEGRATION the Directors are confident of a quick
and simple integration for this Acquisition. The Company has
already been working in partnership with the Acquisition over the
last 12 months as both a referral partner and a business
consultancy provider. A 10 year long business relationship also
exists between the Vendors of BASL and key members of the Company's
management team.
This Acquisition combined with recent trading provides the
Directors with confidence that the Company's significant potential
for growth will continue to be demonstrated in the Second Half of
the year and beyond.
Application has been made for the New Ordinary Shares to be
admitted to trading on AIM. Admission is of the New Ordinary Shares
is expected to occur on 24 June 2011. Following Admission the
Company will have 1,621,602,603 Ordinary Shares in issue.
For further information:
Mission Capital Plc Daniel Stewart
Rob Terry 01329 830501 Oliver Rigby 020 7776 6550
Press Queries Hudson Sandler
Charlie Jack 020 7796 4133
Notes to Editors
About Quindell and Mission Capital Plc
Mission Capital Plc is the holding company of Quindell which was
founded in 2000 and develops, provides and utilises its own
multi-channel e-business based Enterprise Resource Planning and
Business Process Management solutions and related services to
facilitate efficient and effective management of customer
acquisition and servicing within finance, insurance, telecoms,
utilities and other related industries. Quindell also develops and
operates a leisure business model utilising its Enterprise Resource
Planning solutions as a reference environment for its own
technology and cross selling solutions, to be resold to third
parties leisure businesses or via franchise models. Quindell
provides consultancy on, and fully utilises within its own
operations, online strategies, permission based marketing,
membership models and cross selling to maximise revenue per
customer.
For further information, please visit www.quindell.com or
www.missioncapitalplc.co.uk
About Business Advisory Service Limited
Business Advisory Service Limited, one of the UK's leading
business price comparison companies, offering competitive business
electricity, business gas, telecoms and insurance for Businesses in
the UK.
For further information, please visit Error! Hyperlink reference
not valid.www.businessadvisoryservice.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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