Disposal of Rocom

 

TIDMATCG 
 
RNS Number : 3499P 
AT Communications Group Plc 
24 March 2009 
 

ATCG.L 
 
 
 
 
AT Communications Group plc 
("ATC" or "the Group") 
 
 
ATC is an award-winning provider of Information and Communication Technology 
("ICT") solutions 
 
 
www.atcommunications.co.uk 
 
 
GBP12.45 million disposal 
 
 
The Board of ATC is pleased to announce the disposal of Rocom Limited ("Rocom"), 
the Group's distribution subsidiary, for a total consideration of GBP12.45 
million to Nimans Holdings Limited, one of the UK's leading telecommunications 
and data distributors. The Group was advised by Houlihan Lokey on the 
transaction. 
The GBP12.45 million consideration will be satisfied via GBP11.95 million in 
cash on completion, with a further non-contingent cash sum of GBP0.5 million 
payable on 23rd March 2010. The non-contingent deferred consideration is secured 
behind Niman's bank facilities. 
For the year ended 31st December 2008, Rocom generated GBP45.4 million of Group 
revenues and GBP3.5 million of Group EBITDA. Rocom generated a cash outflow 
before tax of approximately GBP2 million during the same period. 
The sale of Rocom enables the Group to improve its strategic focus around its 
two core divisions, Servassure and ATC Solutions, and reduces the dependence on 
lower margin distribution revenues. Servassure is focussed on continuing to 
provide successful and growing support services to large telecommunications 
companies, including BT, KCom, Siemens and Verizon, whilst ATC Solutions 
continues to deliver comprehensive communications management solutions to SME 
and corporate business throughout the UK. The Board remains committed to 
maximising shareholder value and continues to review the Group's operations and 
strategy to ensure that this is achieved. 
As a result of this successful disposal and the step change in the composition 
of the Group, Alex Tupman today announces his intention to step down as CEO of 
the Group. Alex founded the company in 1999 and has overseen its transformation 
and growth over the last ten years and considers this to be the right time to 
hand over to a new team which is committed to further the growth and success 
that has been achieved to-date. Scott Kean, currently COO and responsible for 
the success of the Group's Servassure division, will hold the position of CEO in 
the near term whilst the board undertakes a search program to ensure that the 
best candidate is appointed as a permanent successor. 
 
 
Alex Tupman, CEO commented:- 
 
 
"I am delighted that we have successfully completed the sale of Rocom. We wish 
our former Rocom colleagues every success and thank them for their contribution 
to the Group. The GBP12.45 million consideration significantly reduces the 
Group's net debt and enables the Group to become a more focused, high 
margin business, underpinned by strong recurring revenue streams. 
 
This follows on from our recent trading update, which announced a three year 
contract win with BT worth several million pounds and a pipeline of new business 
for our Servassure Division, which is significantly stronger than this time last 
year and demonstrates the strength of the Group's brand and quality of service. 
 
 
I am very proud of what has been achieved over the last ten years and wish to 
thank everyone at ATC for their hard work and dedication over the years. I leave 
the Group with a strengthened balance sheet and a refocused business primed for 
continued growth under an established management team and a fabulous workforce. 
As a result, the Board is confident of the Group's long term prospects." 
 
 
 
 
 Enquiries: 
 
 
+--------------------------------------+-------------------------------------------------+ 
| AT Communications Group plc          |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Alex Tupman, Chief Executive         |                                  08700 55 80 80 | 
+--------------------------------------+-------------------------------------------------+ 
| www.atcommunications.co.uk           |                                                 | 
|                                      |                                                 | 
| Houlihan Lokey                       |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Toby Pearce                          |                                   020 7747 2750 | 
+--------------------------------------+-------------------------------------------------+ 
|                                      |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Cenkos Securities plc                |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Stephen Keys                         |                                  020 7397 8924  | 
+--------------------------------------+-------------------------------------------------+ 
|                                      |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Biddick                              |                                                 | 
+--------------------------------------+-------------------------------------------------+ 
| Shane Dolan                          |                                   020 7448 1000 | 
+--------------------------------------+-------------------------------------------------+ 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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