Acquisition

Eleco PLC 19 March 2004 19 March 2004 ELECO PLC Eleco acquires Prompt Profiles for £1.2m Eleco plc ('Eleco'), the building systems and construction software group, announces the acquisition of the entire issued share capital of RB Fabrications (Norwich) Limited ('RBF') for a consideration payable of £1,210,000. RBF is the holding company for Anglia Air Movements Limited trading as Prompt Profiles (' Prompt Profiles'). It also owns the freehold property in Norwich occupied by Prompt Profiles. Prompt Profiles, which was founded in Norwich in 1982, specialises in the manufacture and supply of flashings, guttering and other profiled metal products, which are complementary to Eleco's own roofing systems. Prompt Profiles' manufacturing facilities are also well suited to the manufacture of components for rainscreen cladding systems. Of the total consideration £35,000 is being paid in cash on completion and the balance of £1,175,000 will be satisfied by the issue of 4.5% Loan Notes ('Loan Notes'), £50,000 of which is due for repayment on 31 March 2005 and £1,125,000 on 31 July 2005. Eleco has the option to redeem the Loan Notes at any time between 31 March 2005 and 31 July 2005 out of its cash resources or existing bank facilities, or, subject to market and other conditions at the time, it may require the vendors to convert some or all of the Loan Notes into such number of new ordinary shares of 10p each in Eleco, which, when placed on behalf of the vendors, will produce cash proceeds after expenses equivalent to the nominal value of the converted Loan Notes. £525,000 of the Loan Notes will be secured by way of fixed charge over the freehold property owned by RBF and £650,000 will be guaranteed by Eleco's bankers. Audited accounts for the year ended 31 May 2003 showed consolidated profits before tax of £222,000 on turnover of £757,000. Unaudited accounts for the seven months ended 31 December 2003 report consolidated profits before tax for RBF of £161,000 on turnover of £470,000 and net assets at 31 December 2003 amounting to £918,000. The net assets at that date included £376,000 in respect of the freehold property and £395,000 in cash. There were no bank borrowings at 31 December 2003. The interim results of Eleco for the six months ended 31 December 2003 were released today. John Ketteley, Executive Chairman of Eleco comments: 'The acquisition of Prompt Profiles demonstrates our commitment to expanding Eleco's successful Building Systems manufacturing operations when suitable opportunities present themselves. Prompt Profiles is a sound business, which enjoys an excellent reputation for quality and service in the roofing accessories market and I am delighted that it is joining the Eleco Group. 'Prompt Profiles' manufacturing capabilities and product range are complementary to those of SpeedDeck Building Systems, our existing roofing and cladding business and we believe SpeedDeck's national sales team will provide useful marketing opportunities for Prompt Profiles' products. Prompt Profiles' production facilities are also well suited to the manufacture of components for the expanding rainscreen cladding market in which Eleco is becoming increasingly engaged.' Enquiries to: John Ketteley, Executive Chairman Tel: 01920 443 830 Eleco plc David Dannhauser, Finance Director Tel: 01920 443 830 Eleco plc Tarquin Edwards/Chris Steele Tel: 020 7929 5599 Holborn This information is provided by RNS The company news service from the London Stock Exchange
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