Acquisition activity

RNS Number : 2293I

Judges Capital PLC

17 November 2008

 

Judges Capital Plc

('Judges Capital', the 'Company' or the 'Group')

Acquisition Activity

17 November 2008

The Directors of Judges Capital announce that, for a number of months, the Company has been pursuing a prospective acquisition which would constitute a reverse transaction. The target company operates in a niche market segment and is of a similar size to Judges Capital in terms of revenue and profit.

The Board originally expected that the transaction would be announced in September, however, the reduced appetite of banks for M&A lending, against the current backdrop of turbulence in financial markets, has made the financing of this acquisition problematic and unfortunately as long as the present climate prevails, the transaction is no longer in contemplation. 

 

Under the circumstances, the Board considers it prudent to recognise a £300,000 provision to cover the abortive transaction costs incurred to date on this transaction.

Trading remains satisfactory and the Board is confident of a good trading performance for the year to 31 December 2008.

David Cicurel, Chief Executive of Judges Capital, commented: 'Although we can draw comfort, in the present climate, from the fact that we are a profitable and cash generative business, with sizeable cash balances, it is frustrating that an opportunity to double our size through the acquisition of an excellent company is thwarted after the expenditure of considerable energy and funds.'

Ends

Enquiries: 

Judges Capital Plc

David Cicurel, CEO

01342 323 600

Shore Capital

Pascal Keane 

020 7408 4090

Cardew Group

Melvyn Marckus

07775 896491

 

END

 

 

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