Acquisition
Brulines (Holdings) PLC
11 May 2007
Press Release 11 May 2007
Brulines (Holdings) plc
('Brulines' or 'the Company')
Acquisition
Brulines (Holdings) plc (AIM:BRU), the leading provider of draught alcoholic
drinks volume, quality and profit protection systems for the UK licensed
on-trade, is pleased to announce that it has acquired a 66 percent. shareholding
in Coin Metrics Limited ('Coin Metrics') for a consideration of £685,000, of
which £622,750 was paid in cash with the balance satisfied by the issue of
36,974 ordinary shares of 10p each in the Company. Application will be made for
the new ordinary shares to be admitted to trading on the Alternative Investment
Market of the London Stock Exchange.
Brulines has also entered into an option agreement with each of the co-founders
of Coin Metrics, Ian Daintith and Richard Adams, ('Put Option') whereby Ian
Daintith and/or Richard Adams can require Brulines to purchase their remaining
shares in Coin Metrics following determination of the audited results of Coin
Metrics for each of the three financial years ending 31 March 2012 on an agreed
formula, based upon the level of recurring income generated by Coin Metrics in
the relevant financial year. Brulines has the option to acquire all of the
outstanding ordinary shares in Coin Metrics owned by Ian Daintith and Richard
Adams following the expiry of the Put Option on the same formula basis.
Coin Metrics Limited ('Coin Metrics'), established in 2005 and based in Milton
Keynes, has developed the Site Guardian system, a wireless data product that
allows its customers in the amusement and gaming (or 'AWP') industries to
monitor constantly the financial performance of their gaming sites and assets
accurately in real time. The management accounts for the year ended 31 March
2007 for Coin Metrics showed that it generated an unaudited profit before
taxation and directors' remuneration of £149,000 on turnover of £398,000. To
date Coin Metrics has sold over 4,000 Site Guardian units to 100 sites across
the UK, primarily to owners of adult gaming centres or family entertainment
centres.
The co-founders of Coin Metrics, Ian Daintith and Richard Adams, have entered
into service contracts with Coin Metrics. Messrs Daintith and Adams were
previously also directors and shareholders of Wireless Futures UK Limited
('Wireless Futures'), a company providing consultancy services into the
development of wireless technology. In October 2005 Messrs Daintith and Adams,
Wireless Futures and Coin Metrics were notified of a potential claim against
them arising from work done by Wireless Futures. Brulines has been made aware of
this potential claim and after investigation of the merits considers that there
is no substance to the claim.
Brulines' core service is Dispense Monitoring, where an intelligent flow meter
with an imbedded micro-processor is inserted between keg and tap to record
volume data. This data is transmitted for analysis by Brulines via its unique
edisBOX, a wireless telemetry unit which is also capable of supporting other
data sensors within premises, such as those fitted to AWP (or 'gaming') machines
by Coin Metrics.
The acquisition of Coin Metrics is a strong strategic fit with Brulines'
existing Machine Insite business which already provides gaming machine data
management and consultancy services to operators within the pub, club and
leisure markets.
Commenting on the acquisition, James Dickson, Chief Executive of Brulines, said:
'The acquisition of Coin Metrics is an important strategic development in
Brulines' growth plans and complements the innovative nature of Brulines'
existing technology, which is already recognised as the industry standard for
dispense data information. Importantly, the acquisition will enable Brulines to
accelerate our growing AWP data management business to market leadership through
real time remote download of data from AWP machines, whilst also opening up new
applications and markets for the next generation of wireless data capture
systems such as vending.
The deal has strong product synergy and very little overlap between our
respective customer bases where there are already strong relationships. This
gives us a solid platform to cross sell and also take a market leading portfolio
to a widening market. '
Ian Daintith, Director and Co-Founder of Coin Metrics Limited, commented:
'This acquisition represents a strategic step in the growth of the Coin Metrics
business. Clearly there is a great technical and product synergy between the two
organisations and this investment also allows Coin Metrics to accelerate the
delivery of its ambitious plans within both the gaming and vending markets in
the UK whilst maintaining the high level of support and delivery expected by our
existing customer base.'
The Company's maiden preliminary results for the year ended 31 March 2007 will
be announced on 19 June 2007.
- Ends -
Enquiries:
Brulines (Holdings) plc
James Dickson, Chief Executive
Mark Foster, Finance Director Tel: +44 (0) 1642 358 800
mark.foster@brulines.com www.brulines.com
Media enquiries:
Abchurch
Helen Waggott / Justin Heath Tel: +44 (0) 113 203 1340
helen.waggott@abchurch-group.com www.abchurch-group.com
About Brulines
Headquartered in Stockton-on-Tees, Brulines employs more than 174 people. The
company provides a complete 'information gateway' in more than 18,000 pubs in
the UK, capturing a wide variety of valuable information that enables licensees,
operators, owners and brewers the opportunity to improve their business success
through increased knowledge.
A more recent and rapidly growing product offer is Brand Quality Monitoring,
which scrutinises the quality of products running through beer lines in a bar;
measuring volume, temperature, flow rate and liquid type (e.g. beer, cleaning
fluid or water) at the point of dispense.
www.brulines.com
About Coin Metrics
Coin Metrics Limited provides innovative wireless data management systems for
the coin-op industry in the UK. Its flagship product is SITEGuardianTM which
provides live, up to the minute information regarding a gaming machines
financial performance and revenue - wirelessly and from anywhere in the world.
Coin Metrics have ambitious product lines in development which will
revolutionise gaming promotional systems. Their existing customer base includes
some of the largest operators within the gaming industry.
http://www.coinmetrics.com
This information is provided by RNS
The company news service from the London Stock Exchange