Cater Barnard PLC
28 November 2003
FOR IMMEDIATE RELEASE 29th November 2003
CATER BARNARD PLC
ANNOUNCES
ENTRY INTO FACILITIES MANAGEMENT MARKET
The Board of Cater Barnard is pleased to announce that it has agreed to acquire
a 40% shareholding in Navitas Hemway Maintenance & Environmental Limited
('Navitas'), which provides facilities maintenance services to businesses.
The price payable for the Navitas holding is £788,000 subject to Navitas
achieving profits before tax of £560,000 in any 12 month period up to 30th June
2005. If Navitas' profits fall short of this target, the consideration is
reduced proportionately, but if the target is exceeded the vendors will receive
additional consideration equating to 40% of the excess up to a maximum
additional payment of £560,000.
The consideration is to be satisfied entirely in Cater Barnard ordinary shares.
Application will be made for these shares to be admitted to trading on AIM, and
they will rank, pari passu, with all existing Cater Barnard ordinary shares. The
vendors will receive an initial payment of 52,533,333 Cater Barnard shares at an
issue price of 0.5p per share, equivalent to £262,666. At close of business on
27th November 2003, the mid-market price of Cater Barnard's shares was 0.36p.
The acquisition follows an agreement announced on 8 October 2003 in which Cater
Barnard agreed to lend up to £300,000 to Navitas and was granted an option over
the entire issued share capital of the company. A loan of £200,000 has since
been made.
The management team of Navitas has extensive experience in providing facilities
management and maintenance services to a range of business sectors, including
shopping centres, retail chains and commercial property. The management team
intends to develop the business both organically and by selective acquisition.
Navitas, which was formed in 2002, currently holds two major contracts to
provide maintenance services to shopping complexes. Both contracts are for three
year terms.
The directors of Cater Barnard are considering the appointment of David
Williams, chairman of Navitas to the board of the Company to strengthen the
board following the acquisition of the Navitas holding. The Board also intends
to apoint a finance director at the earliest practicable opportunity. Further
announcements will be made in due course.
Cater Barnard's preliminary results for year to 30 September 2003 are expected
to be announced in January 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
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