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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ekay | LSE:EKY | London | Ordinary Share | GB00B0NL6B21 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
Ekay PLC Acquisition of Wallace Barnaby & Associates Ltd for £1.75 million and Directorate Appointment Ekay PLC ("Ekay" or the "Company"), the advertising and marketing agency specialising in the SME market, announces that it has on 24 November 2006 completed the acquisition of the Guernsey based Wallace Barnaby & Associates Ltd and its subsidiaries ("Wallace Barnaby"), one of Britain's largest offshore marketing and advertising agencies, from Wallace Barnaby Holdings Limited (the "Vendor"). The consideration of £1.75 million has been satisfied by the issue at completion of 1,942,105 new ordinary shares in Ekay (the "Consideration Shares") and a payment at completion of £1,012,000 in cash ("Cash Portion"). At completion £350,505 was paid to Wallace Barnaby out of the Cash Portion by way of settlement of a debt owed by the Vendor to Wallace Barnaby. In addition, at completion £95,000 was repaid to Wallace Barnaby by a senior employee. Accordingly, on completion the net cash outflow from Ekay and its subsidiaries, including Wallace Barnaby (together, the "Group") for the purposes of the acquisition was £566,494 (before transaction costs). Wallace Barnaby is an advertising and marketing agency with a subsidiary in Guernsey and Jersey and a number of prestigious clients. It provides a number of media related services including strategic planning, international media buying, creative advertising solutions, event management, PR and online marketing solutions. Based on its unaudited financial results for 6 months ended 30 September 2006, Wallace Barnaby achieved a turnover of £15,204,000 giving a gross profit of £ 813,000 and a profit after taxation of £125,000. Based on its audited financial results for the 12 months ended 31 March 2005, Wallace Barnaby achieved a gross profit of £1,215,000 and a profit after taxation of £84,000 on sales of £ 21,598,000. Wallace Barnaby had net cash of £954,000 as at 30 September 2006. The board of directors of Ekay ("Board") believes that following integration of the Company and Wallace Barnaby and alignment of the financial calendars of the two companies, Wallace Barnaby will add significantly to Ekay's turnover and profit. The acquisition provides an excellent opportunity for Ekay to expand its services, acquire specialisation in specific sectors and geographic areas, and more fully target the demand for tailor-made advertising and marketing programmes. In addition, there will be numerous new marketing opportunities arising from the acquisition. Although these synergies have yet to be quantified, the Board believes they will have a positive impact on profitability almost immediately. The Board believes that an additional strategic benefit to the Group arising from the acquisition in terms of the Group's ongoing acquisition strategy is that the enlarged Group presence will enhance the quality of the Group's potential acquisition targets. Ekay and Wallace Barnaby have enjoyed a long standing customer relationship with each other, and it is expected that this will assist greatly in the post acquisition integration process. Bruce Wallace, managing director of Wallace Barnaby, will join the Board of Ekay with responsibility for the development of the Channel Islands business of the Group. Bruce Wallace's service agreement with the Group provides for an annual salary of £100,400, an annual travel and entertainment allowance of £23,000 and certain pension and other employment benefits, and a reciprocal notice period of 6 months. Application has been made for the Consideration Shares to be admitted to trading on AIM. It is expected that dealings in the Consideration Shares will commence on AIM on 30 November 2006. The Consideration Shares represent approximately 4.96 per cent of the issued share capital of the Company as enlarged by the issue of such shares. Save for in certain specified circumstances, the recipients of the Consideration Shares being the Vendor and certain persons with an interest in the Vendor, may not dispose of such shares before the first anniversary of the date of completion of the acquisition. Eddie Powell, Chief Executive, Ekay Plc commented: "The acquisition of Wallace Barnaby represents an important step in Ekay's growth. Not only will this be immediately earnings enhancing, but the expected cross marketing and shared services opportunities, should augment future profitability." Bruce Wallace, Managing Director, Wallace Barnaby commented: "This is a significant step forward for Wallace Barnaby in terms of increasing our market presence and scope of services we can provide to our clients. We can work with Ekay's successful strategy for growth in the advertising and marketing sectors, and will look to increasing the profile and capacity of our business in addition to our PR division, White Knight." Bruce William Wallace, age 60, has held the following directorships: Current Directorships Directorships within the past five years Wallace Barnaby & Associates Ltd The 2003 World Island Games Co Ltd* The Isle Of Sark Shipping Company Ltd World island Tourism Ltd *The 2003 World Island Games Co Ltd was incorporated to organise the 2003 Channel Island games and was dissolved in 2004 on completion of its role. Bruce Wallace has nothing further to declare under Schedule Two, paragraph (g) of the AIM Rules For Companies. 24 November 2006 Enquiries: Ekay PLC Eddie Powell, Chief Executive 0147 433 4343 Nexus Financial Ltd 020 7451 7050 Nicholas Nelson, Managing Director END
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