Lexington Gold Share Discussion Threads

[m.t.glass] 06/4/2001 10:08

Plus this. Plus yesterday's market figures confirming increased UK car sales. Price now more than 40% up since its November dip and rising.

Subject: Mergers & acquisitions
Company: Lex Service PLC
Date: Fri 30th Mar 2001 12:59:10
Country: United Kingdom
Industry: Automotive

RPT:Lex Service forecasts significant synergies from Auto Windscreens purchase

(repeating to clarify that Andy Harrison is chief executive of Lex Service)
LONDON (AFX) - Lex Service PLC will see "considerable revenue synergies and
operational linkages" arising from its 112 mln stg acquisition of Auto
Windscreens Ltd, chief executive Andy Harrison told reporters on a conference
call.
Lex plans to integrate Auto Windscreens into its RAC unit and operate it
under the brand name 'RAC Auto Windscreens'.
Graeme Potts, managing director of RAC Motoring Services, highlighted the
expanded brand presence the deal will give both companies.
"We're going to have just over 2,000 mobile technician vehicles which will
be either RAC or RAC Auto Windscreens dual branded. That will reinforce the
strength of the brand in both directions", he said.
Potts said Lex made 53,000 customer referrals for automotive glass
replacement or repairs in the last year, and these referrals will, in future, be
steered towards Auto Windscreens.
"We will be able to control the referral mechanism towards our sister
company now", he said.
Potts said about 22 pct of cars currently on the road in the UK are in need
of windscreen repairs or replacement. He said the RAC will look to take
advantage of this by cross-selling the windscreen-repair service to its existing
customers.
"We've clearly got the opportunity to recommend repair work to our customer
base", he said.
Potts also expects significant operational efficiencies.
"There are bound to be ways in which we can operate more efficiently with
the combined technical fleet, the national network, and the logistics system
which Auto Windscreens brings us", he said.
Harrison told reporters the group will look at ways in which the RAC patrol
and Auto Windscreen fitters can work together.
Lex acquired Auto Windscreens from HSBC and Auto Windscreens' management,
who bought the business from Heywood Williams for 77 mln stg in a management
buy-out in 1998.
"Since then the profits of Auto Windscreen have risen quite significantly
because its market share has grown significantly", said Harrison.
Auto Windscreen's profits were 12.8 mln stg last year, compared with 7.9 mln
in 1998. The business currently has a 32 pct market share.
The 112-mln-stg consideration being paid by Lex comprises 42 mln stg in cash
and 70 mln in assumption of debt.
mps/ef/jdd/ob

[m.t.glass] 06/4/2001 10:05

Subject: Mergers & acquisitions
Company: Lex Service PLC
Date: Fri 30th Mar 2001 12:59:10
Country: United Kingdom
Industry: Automotive

RPT:Lex Service forecasts significant synergies from Auto Windscreens purchase

(repeating to clarify that Andy Harrison is chief executive of Lex Service)
LONDON (AFX) - Lex Service PLC will see "considerable revenue synergies and
operational linkages" arising from its 112 mln stg acquisition of Auto
Windscreens Ltd, chief executive Andy Harrison told reporters on a conference
call.
Lex plans to integrate Auto Windscreens into its RAC unit and operate it
under the brand name 'RAC Auto Windscreens'.
Graeme Potts, managing director of RAC Motoring Services, highlighted the
expanded brand presence the deal will give both companies.
"We're going to have just over 2,000 mobile technician vehicles which will
be either RAC or RAC Auto Windscreens dual branded. That will reinforce the
strength of the brand in both directions", he said.
Potts said Lex made 53,000 customer referrals for automotive glass
replacement or repairs in the last year, and these referrals will, in future, be
steered towards Auto Windscreens.
"We will be able to control the referral mechanism towards our sister
company now", he said.
Potts said about 22 pct of cars currently on the road in the UK are in need
of windscreen repairs or replacement. He said the RAC will look to take
advantage of this by cross-selling the windscreen-repair service to its existing
customers.
"We've clearly got the opportunity to recommend repair work to our customer
base", he said.
Potts also expects significant operational efficiencies.
"There are bound to be ways in which we can operate more efficiently with
the combined technical fleet, the national network, and the logistics system
which Auto Windscreens brings us", he said.
Harrison told reporters the group will look at ways in which the RAC patrol
and Auto Windscreen fitters can work together.
Lex acquired Auto Windscreens from HSBC and Auto Windscreens' management,
who bought the business from Heywood Williams for 77 mln stg in a management
buy-out in 1998.
"Since then the profits of Auto Windscreen have risen quite significantly
because its market share has grown significantly", said Harrison.
Auto Windscreen's profits were 12.8 mln stg last year, compared with 7.9 mln
in 1998. The business currently has a 32 pct market share.
The 112-mln-stg consideration being paid by Lex comprises 42 mln stg in cash
and 70 mln in assumption of debt.
mps/ef/jdd/ob


Both deals seem to have gone down well. Price rising strongly in recent days/weeks. Up more than 40% from its November dip. One of my safest holdings over the first quarter. And yesterday's news of increased UK car sales generally will have added more cheer.
MT.

[stanleyap] 30/3/2001 23:48

And now they have added Auto Windscreens to the Stable

[share wizard] 30/1/2001 09:16

Lex won a £500 million contract with the Ministry of Defence, guaranteed revenue over 10 years. Good news.

[share wizard] 30/1/2001 09:07

Lex has won an MoD contract worth £500 million over the next ten years.