21 September 2011
St Ives plc - Acquisition
St Ives plc ("St Ives" or "the Group") is pleased to announce the acquisition
of Pragma Holdings Limited ("Pragma"), a leading consultancy specialising in
retail and consumer markets.
The acquisition of Pragma follows the acquisition of Response One announced
last week and represents another important step in St Ives's strategy to create
a complementary range of marketing services, whilst reducing exposure to
commoditised print markets and to enable the Group to add further value to
existing and new clients.
Established in 1988, Pragma helps its clients to develop and implement retail
and consumer strategy through the use of sophisticated market research and
complex analysis. The business employs approximately 17 staff, is headquartered
in Twickenham and has a strong client base including a number of major
retailers, financial institutions and other consumer facing organisations.
In the financial year ended 31 March 2011, Pragma generated underlying* EBITDA
of £0.6 million and a profit before tax of £0.5 million on revenue of £2.5
million; gross assets were £1.4 million. Pragma is expected to generate
underlying* EBITDA of approximately £0.7 million on revenue of £3.0 million for
the year ending 31 March 2012 (* before items of a one-off nature).
St Ives has agreed to acquire all of the issued share capital of Pragma, on a
cash and debt free basis, for a multiple of 6.0x the audited EBITDA of Pragma
for the year ending 31 March 2012, subject to a cap of £6.0 million. The
consideration will comprise an initial amount of £3.3 million, payable on
completion, followed by a deferred amount, payable subject to the audited
EBITDA of Pragma for the year ending 31 March 2012.
The vendors are co-founders Monica Lucas and Roy Palmer, and Chief Executive
Patrick Woodall. Approximately 65% of the consideration payable will be in cash
with the balance to be satisfied by the issue of new St Ives ordinary shares.
It is expected that the acquisition will be earnings enhancing in the current
financial year.
Following the acquisition, Pragma will operate as a subsidiary of St Ives and
will continue to be managed by the existing management team from its current
premises.
Patrick Martell, Chief Executive of St Ives said:
"Following the acquisition of Response One last week, Pragma is another
excellent fit with our growing portfolio of marketing services offerings and
will give us further opportunity to sell a wider range of higher value add
services across a broader customer group. I am delighted to welcome Pragma to
the St Ives Group."
- Ends -
For further information please contact:
St Ives plc 020 7928 8844
Patrick Martell, Chief Executive
Matt Armitage, Finance Director
MHP Communications 020 3128 8100
John Olsen / Ian Payne / Giles Robinson
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.