Eckoh Technologies PLC
01 April 2005
For immediate release 1 April 2005
Eckoh Technologies plc
("Eckoh" or the "Company")
Acquisition of Anglia Telecom Centres Limited
Eckoh, one of Europe's leading speech application service providers, today
announces that its wholly-owned subsidiary Symphony Telecom Holdings plc ("STH")
has exchanged contracts for the purchase of Anglia Telecom Centres Limited ("
Anglia") from TTG Europe plc for cash consideration of up to £10.0 million. The
completion of this acquisition is conditional on STH securing senior bank debt
financing in the amount of £6.0 million within the next 30 days. The balance of
the purchase price is expected to be met from existing Eckoh cash reserves and
is subject to the closing net asset position of Anglia on completion.
Anglia was incorporated in 1987 and is a successful mobile distribution and
fixed line reseller to the SME market in the UK. Anglia supplies a range of
mobile network connection packages, mobile phone handsets and accessories
through a network of over 170 mobile phone dealers in the UK. The business
supports the dealer network through providing marketing expertise, sourcing the
hardware and arranging for the connection of the dealers' customers to the
desired network. To provide these connection services Anglia has direct
connection agreements with five mobile phone networks, being O2, Orange,
T-mobile, Hutchinson 3G and Vodafone. In addition, Anglia acts as a switchless
reseller of fixed line telecommunications services, providing such services to
over 1,000 business customers. Revenues for the last audited financial year
ended 31 March 2004 were £22.4 million and profit before taxation of £1.7
million.
Following completion, Anglia will operate alongside STH's existing fixed line
and mobile services subsidiary Symphony Telecom Limited ("Symphony"). On a
combined basis Anglia and Symphony will generate unaudited annualised revenues
in excess of £48.0 million and unaudited profits before taxation of
approximately £2.4 million. The Board of Eckoh is of the opinion that by
acquiring Anglia efficiencies can be achieved and margins increased within the
two businesses, increasing profitability within STH. In addition, Symphony has
approximately £10.0 million of tax trading losses which it can carry forward to
offset against future taxable profits.
Together with its nominated advisor, Evolution Securities Limited, the Board of
Eckoh is also conducting a strategic review of the Company, with the objective
of demonstrating the value of Eckoh's constituent business activities, which it
believes may not be reflected in Eckoh's current share price. The Company
expects to make further announcements as appropriate.
Eckoh's current trading performance is in line with market expectations and
expects to report increased profits before tax (excluding goodwill amortisation)
of at least £600,000 for the six months ending 31 March 2005, despite suffering
a bad debt write off of £200,000 in respect of Auctionworld during this period.
For further enquiries, please contact
Eckoh Technologies plc Tel: 08701 100 700
Martin Turner, Chief Executive
Nik Philpot, Chief Operating Officer
Buchanan Communications Tel: 020 7466 5000
Mark Edwards/Jeremy Garcia
This information is provided by RNS
The company news service from the London Stock Exchange
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