Acquisition of inGroup
Glen Group PLC
09 August 2007
Glen Group plc ('Glen' or 'the Company')
Acquisition of I G Software Limited, trading as inGroup ('inGroup')
Glen Group plc, the Edinburgh based provider of integrated IT and communication
services, is pleased to announce it has acquired the entire issued share capital
of inGroup, an IT professional services and value added reseller, through its
subsidiary Eclectic Group Limited ('Eclectic').
The acquisition of inGroup was for a total consideration of £1,350,000 satisfied
by the issue of 200,000,000 shares at 0.55 pence per share and £250,000 in cash
funded from internal sources and bank facilities. The price per share represents
a premium of 100% above the mid-market price at the close of business on 8th
August 2007.
inGroup provides consultancy services and software to assist organisations
address corporate performance management needs, such as improved financial
reporting, budgeting and planning. inGroup is vendor independent, allowing it to
advise organisations and tailor solutions and technology to a client's specific
needs. inGroup manages the entire process, from the initial business discovery
and requirements analysis through to implementation, training and support,
providing resources at any given point in the process.
The services provided by inGroup are highly complementary to the Business
Intelligence ('BI') focus of Eclectic which, when coupled with inGroup's
performance management solutions, delivers a consultancy offer that is wider in
scope than a pure BI proposition. Prior to the acquisition, Eclectic had started
working on joint proposals with inGroup and has already been successful at
gaining its first joint contract.
The acquisition also brings with it a permanent base in the London area, where
Eclectic is also active. Eclectic intends to fully integrate the consulting
teams and the two principals of inGroup, Surit Patel and Jofi Alexander, will
head up Eclectic's London area operations post completion.
Below are the results of inGroup for the year ended 31st December 2006 taken
from the unaudited filed accounts for that year. The unaudited figures for the
half-year to 30th June 2007 are taken from the internal management accounts. The
accounts are prepared under UK GAAP.
INCOME STATEMENT 6 Months ended Year ended
30th June 2007 31st December 2006
£ £
Turnover:
Consultancy and support 702,767 1,446,454
Cost of Sales:
Direct costs (282,135) (672,049)
Gross Profit 420,632 774,405
Overheads (346,359) (877,357)
Other operating income 0 667
Operating Profit/(loss) 74,273 (102,285)
Interest (net) 3,185 3,889
Profit/(loss) before taxation 77,458 (98,396)
Taxation 0 0
Profit retained 77,458 (98,396)
inGroup has made significant changes to its business in the last six to nine
months which has had the effect of materially reducing its overhead base.
Although not a material factor in the decision to acquire inGroup, Eclectic
expects to make further savings when the two businesses are fully combined,
largely by reducing duplicative processes.
At 30th June 2007, inGroup had cash resources of £243,764 and no debt.
The balance sheets of inGroup, taken from the unaudited filed accounts at 31st
December 2006 and the unaudited management accounts as at 30th June 2007
prepared under UK GAAP are summarised as follows:
BALANCE SHEET 30th June 2007 31st December 2006
£ £
Fixed Assets 0 0
Current Assets
Stock 0 10,800
Debtors and prepayments 403,880 258,344
Bank and cash 243,764 155,084
Total Current Assets 647,644 424,228
Current Liabilities
Creditors and accruals 293,501 155,273
Taxation and social security 35,160 27,430
Total Current Liabilities 328,661 182,703
Net Current Assets 318,983 241,525
NET ASSETS 318,983 241,525
Represented by:
Share capital 1,750 1,750
Share premium 74,250 74,250
Reserves 242,983 165,525
SHAREHOLDERS' EQUITY 318,983 241,525
Commenting today Graham J Duncan, Chief Executive of Glen Group plc, said:
'inGroup is highly complementary to Eclectic, giving us a solid London area base
and bringing to Eclectic a group of consultants who are focused on corporate
performance solutions across a range of software platforms. We can see immediate
value being added. This acquisition is very much in keeping with our strategy to
build Glen Group through bolt-on opportunities, which enhances our services to
customers as well as strengthen our organic growth'.
9th August 2007
Enquiries:
Glen Group plc
Graham J Duncan, Chief Executive Tel: 0845 119 2100
Pelham PR
Alex Walters Tel: 0203 170 7435
Robert Koh Tel: 0203 170 7444
Seymour Pierce
Jonathan Wright Tel: 0207 107 8000
Notes:
Glen
Glen is a value added, solutions based provider of IT and communications
products and services. In the SME market it provides a wide range of integrated
services including IT consultancy and support, mobile solutions including voice
and data, customer relations management, telecommunications and hosted broadband
services. In the corporate, enterprise and public sector, the group is a niche
provider of business intelligence and related IT solutions.
The group has offices in Glasgow, Edinburgh, Rotherham and London.
Eclectic
Eclectic is a specialist firm of Business Intelligence practitioners, providing
management information, performance management, data quality and integration
solutions for both the commercial and public sectors.
These solutions help organisations to monitor, manage and improve performance by
providing accurate and consistent views of performance, relating to employees,
products, services and customers. Eclectic helps empower people to make better
and more informed decisions.
This information is provided by RNS
The company news service from the London Stock Exchange
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