Tribal Group PLC
13 August 2003
13 August 2003
Tribal Group plc
Acquisition of Geronimo Public Relations Limited
Tribal Group plc ('Tribal'), the provider of professional services to the UK
public sector, is pleased to announce that it has completed the acquisition of
Geronimo Public Relations Limited ('Geronimo') for a total consideration of up
to £13.65 million.
Geronimo is one of the UK's leading public sector PR and corporate social
responsibility agencies and was recently awarded the title of the 'Fastest
Growing PR Agency in the UK' by PR Week.
Geronimo's clients include several central government departments and agencies,
such as the DfES, DVLA and the DWP, charities and the community relations
departments of large corporations. Approximately 70% of sales are from the
education sector.
In combination with Tribal's existing communications operations, Geronimo will
allow Tribal to offer a comprehensive range of communications and PR services to
its public sector clients across health, education and local and central
government.
The initial consideration for the entire issued share capital of Geronimo of
£9.15 million (which includes the purchase of cash balances of approximately
£1.8 million) has been satisfied by:
• £7.65 million in cash; and
• the issue of 436,426 new ordinary shares of 5p each in Tribal
Deferred consideration of up to a maximum £4.5 million in total will be paid
based on the growth in operating profit of Geronimo in the periods ending 31
March 2004, 2005 and 2006. The deferred consideration will be satisfied by the
issue of new Tribal shares or, at Tribal's option, loan notes, save for the
first £750,000 which will be satisfied in bank guaranteed loan notes.
The vendors have given an undertaking not to sell the shares issued as initial
consideration before the preliminary announcement of Tribal's results for the
year ending 31 March 2004.
In the year ended 30 June 2003, Geronimo had operating profit of £1.1 million on
turnover of £3 million. Net assets at 30 June 2003 were £1.4 million.
Application will be made for admission of the 436,426 new ordinary shares to be
issued as initial consideration to the Official List of the UK Listing Authority
and to trading on the London Stock Exchange. It is expected that these shares
will commence trading on 18 August 2003. The shares will rank pari passu in all
respects with the existing ordinary shares of 5p each in Tribal.
Commenting on the acquisition, Henry Pitman, Chief Executive of Tribal, said: '
We are delighted to announce the acquisition of Geronimo, which is an important
step in the development of our communications capability, enabling us to offer a
full range of PR, communications consultancy and publishing services to our
public sector clients. We consider there are significant growth prospects for
this area of our business over the coming years.'
For further information please contact:
Henry Pitman, Chief Executive, Tribal Group plc Tel:01285 886020
Simon Lawton, Group Finance Director, Tribal Group plc
This information is provided by RNS
The company news service from the London Stock Exchange
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