Business
Acquisition
Acquisition.
About this update from Acg Metals Limited Class A
[{"type":"text","content":"\n Accuma Group PLC\n03 July 2006\n\n\n\n\nPress Release 3 July 2006\n\n\n\nAccuma Group plc\n\n\n Acquisition of Thomas Charles & Co\n\n\nAccuma Group Plc ('Accuma' or the 'Group'), a leading provider of consumer\nfinancial solutions, is pleased to announce the acquisition of London based\nThomas Charles & Co Limited ('Thomas Charles'), a consumer debt advice company\nspecialising in packaging of Individual Voluntary Arrangements (IVAs).\n\n\nSummary\n\n\n• Acquisition of Thomas Charles & Co - a consumer debt advice company \n specialising in packaging of IVAs;\n\n• Thomas Charles currently averages 40 IVA approvals per month, expected to \n increase to circa 70 per month within 3 to 4 months;\n\n• Board expects the acquisition to be immediately earnings enhancing;\n\n• Will increase monthly run rate and market share;\n\n• Gives Accuma a London base.\n\n\nThe acquisition is for an initial consideration of £2 million with up to a\nfurther £10.5 million payable under a three-year earn out, further details of\nwhich are set out at the end of this announcement.\n\n\nThomas Charles was founded in 2004 and since this time has experienced\nsignificant growth. The founders of the business, James Falla and William\nBerry, will both remain with the business and work closely with the Board of\nAccuma to enhance growth and profitability.\n\n\nThe business operates as an intermediary between Insolvency Practitioners and\nconsumers who are experiencing significant financial difficulties. Where\nappropriate, an IVA is recommended and Thomas Charles assists the client in\npreparing the statement of affairs required by an Insolvency Practitioner to\npropose an IVA.\n\n\nFor the 6 month period to 31 May 2006, Thomas Charles recorded an unaudited pre\ntax profit of £206,000 on turnover of £641,000. Historically, as an\nintermediary, Thomas Charles has passed all of its cases to a network of\nindependent insolvency practitioners throughout the UK, for which it earns a\nreferral fee equal to approximately 20 per cent. of the IVA case fee, which is\ntypically £7,500-8,000 over five years (with circa 50 per cent. of the total\nearned in year one). All of these cases will now be completed by Accuma, which\nwill thus retain all of the case fees (i.e. 100 per cent. rather than 20 per\ncent.) and increase its market share.\n\n\...