Tribal Group PLC
1 November 2001
Tribal Group plc ('Tribal Group' or the 'Company)
Acquisition of Cambridge Training and Development Limited ('CTAD')
Tribal Group is pleased to announce the acquisition of 100 per cent. of the
issued share capital of CTAD.
CTAD is a leading e-learning consultancy and content developer in the areas of
professional development, basic skills and post-16 education. It publishes
e-learning products and delivers consultancy and multi-media content under
contract to public sector bodies, including the Department for Education and
Skills (through the Adult Basic Skills Strategy Unit), Learning and Skills
Councils, the Basic Skills Agency, the Qualifications and Curriculum Agency,
the Learning and Skills Development Agency, the University for Industry and
the National Institute for Adult and Continuing Education.
In the year ended 31 March 2001, CTAD achieved an operating profit of £382,000
on turnover of £3,458,000. CTAD is currently experiencing strong demand for
its products and services and operating profit in the six months ended 30
September 2001 was ahead of the comparable period last year.
The initial consideration of £4,237,968 (which includes the acquisition of
cash balances of £767,187) is to be satisfied by:
- the issue of 190,366 ordinary shares of 5p each in Tribal
Group ('New Tribal Group Shares');
- £2,530,150 in bank guaranteed loan notes; and
- £1,171,929 in cash.
Further consideration of up to £0.5 million will be paid, based on the
performance of CTAD in the two years ending 31 March 2003. For every £1 by
which the average audited operating profit for the two years ending 31 March
2003 exceeds £600,000, Tribal Group will pay £4. The deferred consideration
will be satisfied by the issue of new Tribal Group shares or, at Tribal
Group's option, bank guaranteed loan notes.
Application has been made for admission of the New Tribal Group Shares to
trading on the Alternative Investment Market of the London Stock Exchange
('AIM'). It is expected that the New Tribal Group Shares will commence
trading on AIM on 7 November 2001. The New Tribal Group Shares will rank pari
passu in all respects with the existing ordinary shares of the Company.
Commenting on the announcement, Henry Pitman, Chief Executive of Tribal Group,
said:
'We have been working with CTAD for some time, and have been impressed by
their strong position in the adult basic skills market and excellent
contractual relationships. Their e-learning products are performing
particularly well, and one has recently been nominated for a major
international award.
This acquisition further strengthens our position in the education market, and
will help us to increase our presence in basic skills. This is an important
area; Skills for Life, the Government's basic skills strategy, has a budget of
£1.5bn over the next three years.
We have already seen significant opportunities for joint working with other
group companies and we expect CTAD's growth to be accelerated by these cross
selling opportunities.'
For further information contact:
Henry Pitman, Chief Executive Tribal Group plc
01386 702900
Nicholas Naylor Granville Baird
020 7488 1212
ENDS
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