Launch of Peopleschampion.com
SMG PLC
07 August 2006
SMG Launches Online Champion for Consumers
The Board of SMG plc ('SMG') announces the launch of Peopleschampion.com - an
exciting new online initiative that will offer consumers exhaustive price
comparisons in the purchase of financial, utility, travel and other products.
Peopleschampion.com is expected to generate significant consumer transactions
and revenues, drawing on the substantial promotional power of SMG's media
assets: STV; Virgin Radio; Primesight and Pearl & Dean.
Peopleschampion.com was conceived, and will be headed, by Jim Spowart, founder
of Standard Life Bank and Intelligent Finance and a recognised innovator in the
personal finance arena. Jim will oversee the launch of the concept, feature
strongly in editorial content giving consumers guidance on seeking value for
money and use his reputation and profile to market and promote the website.
The Peopleschampion.com website will be powered by Moneysupermarket.com which
has relationships with a large number of suppliers of products and has a
well-established position in the UK intermediary online space. The business
will generate income based on the number of users utilising the website's
comparison functions and it is expected to reach profitability early in its
first year.
Peopleschampion.com represents an excellent fit with SMG's online strategy and
will be supported by SMG's other consumer-facing online businesses: stv.tv;
virginradio.co.uk and pearlanddean.com.
Commenting on the launch of Peopleschampion.com, Donald Emslie, Acting Chief
Executive of SMG, said:
'Peopleschampion.com is a fantastic business proposition and provides a great
opportunity to build on our very strong relationship with our viewers and help
them save money.
'This initiative fits SMG's digital strategy like a glove and will help us
achieve our stated aim of generating more than 25% of broadcasting revenues
from non-spot advertising by 2010.'
Jim Spowart said:
'Put simply, we will be bringing consumers the best deals. This will save them
significant amounts of money. My track record has been in offering people
value-for-money products and Peopleschampion.com is the natural progression.
We will be offering huge choice and showing people how they can move to a
better deal in a wide range of products from credit cards, insurance,
mortgages through to travel and energy supply.
'This is the future and we know that the UK consumer has been waiting for this
easy-to-use, one-stop shop.'
About Peopleschampion.com
The internet-based business has been created by Jim Spowart and a series of
financial backers. Its aim is to become one of the UK's most trusted and
recognised price comparison websites offering genuine choice to the consumer
across a wide range or products.
About Jim Spowart
Jim is one of the UK's most successful entrepreneurial financial experts. After
working for many years with Royal Bank of Scotland, he helped Peter Wood set up
Direct Line Financial Services. He was the founder of Standard Life Bank and
Intelligent Finance, the innovative internet subsidiary of HBOS. Under Jim's
direction, IF was able to capture nearly 8% of the UK's mortgage market. He has
created more than 5,000 jobs across the UK.
Details of the Transaction
Peopleschampion.com Limited ('the Company'), a company which has not previously
traded with gross assets valued at £2,060, as at 31 December 2005, owns the
Peopleschampion.com website, trademark and associated intellectual property.
SMG has, today, acquired an 80% holding and 100% of the voting rights in the
Company from Jim Spowart, Kenneth Kemp, Ian McAteer, Mark Reid and
Andrew Lindsay (together 'the Founders') for an initial consideration of
£250,000. The Founders retain a 20% holding in the Company and enhanced profit
incentive arrangements in the initial period. A further £250,000 of deferred
consideration is payable by SMG to the Founders in aggregate, subject to the
satisfaction of certain financial performance targets. The consideration is to
be satisfied by the issue of loan notes by SMG to the Founders.
SMG has granted to the Founders an option to require it to purchase their
shareholdings in the Company in January 2010 and January 2012 and the Founders
have granted to SMG an option to acquire their shareholdings in the Company on
the fifth anniversary of today's date. The purchase price for any shares
acquired pursuant to these options shall be based on a multiple of the
Company's profits, subject to a cap of £15,000,000 in aggregate and subject to
a minimum amount of: (i) £250,000 in aggregate in the event that the relevant
profits of the Company exceed £500,000 but are less than £1,000,000; and (ii)
to a minimum amount of £500,000 in the event that the relevant profits of the
Company are greater than or equal to £1,000,000.
Ends
7 August 2006
Further enquiries:
Callum Spreng
Group Communications Director
0141 300 3640
SMG plc
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