Completion of Acquisition

RNS Number : 4007D

Toople PLC

19 February 2020

 

For immediate release: 19^th February 2020

Toople PLC

("Toople" or the "Company")

Completion of Acquisition of DMS Holding

Toople, a provider of bespoke telecom services to UK SMEs, is delighted to confirm that further to recent announcements the Acquisition of DMS Holding ("DMSL") has now completed.

DMS Holding is the holding company for DMSL, a company which provides unified communication services in the UK.  DMSL commenced trading in 2002 and has over 15 years' experience of providing broadband connectivity, mobile and fixed voice and cloud services.

The Board believes that the acquisition of DMSL will be transformational for Toople for the following principal reasons:

·     DMSL is a family owned business, which acts as a BT Premier reseller principally in the B2B market

·     In the year to 30 April 2019, DMSL's turnover was £3.1 million, with a profit before taxation of £331,282

·     The Company is responsible for over 250,000 BT customers and over 400,000 Revenue Generating Units

·     Headquartered in Bishop Stortford, the company also has sales and quality operations based in the same Durban     site as Toople's sales and marketing operations

·   DMSL currently offers a portfolio of business services and products, from a single phone line to a multi-site unified comms VoIP platform, delivered via a network of telecoms and IT carriers and content providers across the UK including BT Business, BT Global Services, Gamma , EE, Vonage, Talktalk Business and 02

·   DMSL has multiple revenue streams including: upfront cash and recurring revenue from BT activities; recurring revenues from directly managed and contracted customers; and revenue share with resellers

·   Once completed the combined Group will be of larger scale opening up opportunities to benefit from operational gearing and operating efficiencies

·     DMSL is cash generative, accelerating Toople's timeline to achieve profitability and positive cash generation

Andy Hollingworth, CEO of Toople, commented:

"We are very pleased to have completed this transformational acquisition and would like to thank all the shareholders, old and new who have backed us, as well as our new debt finance partners HomeSelect Finance.  We believe that the combined business will now accelerate to EBITDA profitability and cash self-sufficiency, reducing the historic reliance on the market to provide funds for working capital.

"We now look forward to integrating the businesses and capitalising on the strong operational and market synergies.  We look forward to keeping the market updated on financial and operational progress in both businesses and the combined Group ahead of our interim results."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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For further information please visit www.Toople.com or contact:

Toople PLC Andy Hollingworth, Chief Executive Officer / Kevin Lawrence, Chief Financial Officer	Tel: [phone]
Cairn Financial Advisers LLP Sandy Jamieson/Tony Rawlinson/Ludovico Lazzaretti	Tel: [phone]
Novum Securities Limited David Coffman	Tel: [phone]
Turner Pope Investments Limited Andy Thacker / Zoe Alexander	Tel: [phone]
Belvedere Communications John West / Llew Angus	Tel: [phone]

Notes to editors:

Toople PLC, a company incorporated in the UK provides a range of telecoms services primarily targeted at the UK SME market. Services offered by the Group include business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and Traditional Services (calls and lines) all of which are delivered and managed through Merlin, the Group's proprietary software platform.

The Group is differentiated by its focus on creating small business connectivity solutions, with robust and reliable packages that will enhance our customer's companies. In addition, our vision is based on trust and transparency, with no hidden fees within our pricing policy providing customers with a clear understanding of cost.

Toople Plc has a strong and highly experienced Board and management team who are focused on growing the business both organically and by identifying earnings enhancing strategic acquisition opportunities.

 

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