Dowlis Corporate Solutions plc
07 November 2005
Date: 7 November 2005
On behalf of: Dowlis Corporate Solutions plc ('the Group' or 'Dowlis')
Dowlis Corporate Solutions plc
First Day of Dealings
Dowlis Corporate Solutions plc, the marketing solutions group, announces that
its shares have been admitted to trading on AIM today under the trading symbol '
DWL' ('Admission').
The Company has raised £4.5 million (before expenses) through a placing of
12,500,000 new ordinary shares of 0.4p per share ('Ordinary Shares') at a
placing price of 36p per share ('the Placing Price'). Dowlis Corporate
Solutions plc's market capitalisation will be approximately £13.5 million
following admission to trading of all issued Ordinary Shares at the Placing
Price.
• Dowlis Corporate Solutions plc is a marketing solutions group focused on
creative marketing solutions including the use of Promotional
Merchandise to support wider marketing strategies, and generate client
goodwill.
• The Group's strategy is to create a leading integrated marketing services
and support group organically and by acquisition.
• The Group currently retains over 1,000 customers, ranging from large
corporates to SMEs.
• Dowlis has an experienced Board with extensive plc and marketing services
experience.
• For the 9 month period ended 30 June 2005, Dowlis had a turnover of £15.7m
and is profitable.
• The Directors believe that the most directly comparable quoted companies
are 4imprint Group plc, Media Square plc and Tarsus Group plc.
• The Company has received provisional approval from HM Revenue & Customs
that the Placing Shares are capable of being a 'qualifying holding' for
the purpose of investment by VCT and will rank as eligible for the purpose
of EIS.
Placing Price 36p
Number of Ordinary Shares in issue prior to the
Placing 25,001,500
Number of Ordinary Shares being issued pursuant to the Placing 12,500,000
Number of Ordinary Shares in issue following the Placing 37,501,500
Placing Shares as a percentage of the enlarged issued
share capital 33.33%
Net proceeds of the Placing £4.1m
Market capitalisation of the Company at the Placing Price
following Admission £13.5m
Commenting on Dowlis's intention to float on AIM, Martin Varley, the Group's
Chief Executive, said:
'Dowlis has an aggressive buy and build strategy, our AIM listing will enable us
to structure acquisitions effectively and allow us to invest further in the
facilities and technology we need to deliver world class marketing solutions and
customer service. We have been delighted with the response we received from the
City - we believe there are a number of exciting opportunities available to us
and look forward to updating shareholders on our progress in the months to
come.'
Zeus Capital is financial and nominated adviser to the company and Corporate
Synergy is the Company's broker.
Enquiries:
Dowlis Corporate Solutions plc
Martin Varley (Chief Executive) 0870 224 6677
07775 848 252
Redleaf Communications
Emma Kane/Miranda Good/Wendy Timmons 020 7955 1410
Corporate Synergy PLC
Gavin Haywood 020 7448 4450
Zeus Capital
Alex Clarkson 0161 831 1512
Notes to Editors:
• Publication quality photographs are available via Redleaf.
• Dowlis has an experienced Board which comprises: Colin Cooke, Chairman, who
has 21 years' experience as a public company director; Martin Varley,
Chief Executive Officer, who has 17 years' experience in the promotional
merchandise industry and has gained an extensive knowledge of the supply
and distribution sectors of the market; David Gray, Finance Director,
formerly finance director of Gowrings PLC for 10 years; and, Keith Willis,
Non Executive Director, who recently received a lifetime achievement award
from PROMOTA in recognition of his 30 years' contribution to the industry.
• It is estimated that the annual UK market for promotional merchandise is
£1 billion (source: PROMOTA), which comprises approximately 2,000
distributors supported by 600 UK based suppliers of a wide range of
products and services.
• The Group currently has four primary sales channels:
Promotional Products - the Directors believe Dowlis is the second largest
distributor of promotional products in the UK. It sources products from around
the World which are then personalised in accordance with the client's brand and
design guidelines in support of their wider marketing campaigns.
Trade Only(TM) - suppliers to independent distributors via an annual catalogue,
exhibition and website. Trade Only(TM) receives orders from approximately 25
per cent of the UK's distributors who access the Trade Only(TM) range which
features 600 products all of which are branded to the distributors'
specification. Trade Only(TM) has entered into a letter of intent with
Technologo to provide Trade Only TM and its distributor customers with the
opportunity to show their clients branded products on screen before they order.
Information Services - a bespoke, industry specific website that contains
detailed information on over 1,000 products including full details of the
supplier and also detailed product information. Revenue is generated from
suppliers wishing to be featured on the website.
Dowlis Communications - a design agency based in Manchester, providing a range
of services which cover all aspects of design and marketing, including print and
brochure production, media planning and buying. It is expected that Dowlis
Communications will provide the platform for a number of potential additional
services that can be added to the Group's offering as the strategy to focus on
marketing services is developed.
The Group's offering is underpinned by its investment in software and
information technology. Its bespoke sales order processing system and product
database was carefully designed to complement the strategy of the Group. The
Directors believe that it will provide the Group with a competitive advantage
over others in the industry.
This information is provided by RNS
The company news service from the London Stock Exchange
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