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Findel PLC, one of the country's leading
Home Shopping and Educational Supplies
businesses, is pleased to announce that
it has acquired the following businesses
and assets from the Administrators or
Administrative Receivers of certain companies
within the Group comprised of European
Home Retail plc and its subsidiaries ('EHR').
*
the trading business and assets of Kitbag
Limited, one of Europe's largest online
sports retailers;
*
the trading business and assets of I Want
One Of Those.com Limited, one of the UK's
most visited gifts and gadgets website;
*
the remaining 40% of the share capital
of Home Farm Hampers Limited not already
owned by Findel;
*
the trading business and assets of Kleeneze
UK Limited, a leading network marketing
company; and
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certain other trading assets comprising
principally the Cabouchon brand name and
the infrastructure assets required for
the Home Farm business
The
total consideration of £34m was
satisfied in cash. The unaudited net assets
relating to the businesses acquired were
£19m.The acquired businesses had
unaudited revenues of £113m in the
year to 30 April 2006. The acquisitions
are expected to be earnings enhancing
in the first full financial year commencing
1 April 2007.
The
acquisitions are firmly in line with the
Company's stated strategy of developing
its cash with order and internet businesses
to complement the current home shopping
division and increase the utilisation
of its assets.
*
Kitbag is an internet retailer selling
a wide range of sportswear products from
the leading sports brands. In addition
to its own website www.kitbag.com. Kitbag
also has the exclusive rights to operate
the official website stores for FC Barcelona,
Reebok, Manchester United, Chelsea, Celtic
and Nike Football. Unaudited annual turnover
rose by 47% in the year ended 30 April
2006 to £14.3m (2005, £9.7m)
with an unaudited EBITDA loss in that
year of £0.5m.
*
I Want One Of Those ('IWOOT') is one of
the most frequently visited internet retailers,
selling a wide range of gifts and gadgets
via its website www.iwantoneofthose.com.
Unaudited annual turnover rose by 49%
in the year ended 30 April 2006 to £10m
(2005, £6.6m) with an unaudited
EBITDA loss in that year of £0.6m.
The
acquisitions of Kitbag and IWOOT significantly
enhance Findel's range of internet operations,
an area Findel has identified for growth,
whilst increasing its market share in
the increasingly important cash with order
home shopping market. In addition, the
acquisitions of Kitbag and IWOOT will
materially add to Findel's systems and
know how in Internet retailing and bring
strong management teams who are highly
experienced in this fast growing sector.
*
Home Farm Hampers is a Christmas savings
club whereby customers save regularly
for shopping vouchers, food hampers and
non-food items to be supplied to them
shortly prior to Christmas. It was established
as a jointly owned enterprise with Findel
in 1986.
*
Kleeneze
is a network marketing company established
in the UK in 1923. It offers a range of
over 1,500 home and personal care products
presented through a variety of catalogues
and sold through a network of over 14,000
self-employed distributors in the UK,
Ireland, Netherlands and Germany. Kleeneze
had unaudited revenues of £89m in
the year ended 30 April 2006 contributing
unaudited EBITDA of £6m.
The
acquisition of Kleeneze provides Findel
with a further strong home shopping brand,
with considerable potential for integration,
working capital and other synergistic
benefits alongside the Group's existing
operations.
In
its audited accounts for the year ended
30 April 2005, the entire EHR Group had
sales of £175.9m and a net profit
before taxation of £5.9m. The net
profit included non operating exceptional
profits of £1.4m. At the most recent
balance sheet date of 31 October 2005
it had gross assets of £80.6m.
On
30 June 2006 EHR announced that as a result
of the placing in administration of the
voucher provider to its subsidiary Farepak
it would face a peak borrowing requirement
above its bank facilities. On 23 August
2006 EHR announced that it had requested
suspension of its shares as no conclusion
had been reached with its bankers over
the provision of additional finance.
On
13 October 2006 EHR announced the Appointment
of an Administrative Receiver to European
Home Retail plc, noting that this had
been as a result of the appointment of
an Administrator by its subsidiary Farepak,
and an inability to reach a funding agreement
with its bankers.
Findel
is confident that the businesses which
are being acquired, are strong and can
flourish under Findel's management and
contribute to the overall strength of
the Findel Group. Findel is not acquiring
the Farepak business.
Patrick
Jolly, CEO of Findel PLC said:
'These
acquisitions are directly in line with
our stated strategy to grow our home shopping
business profitably through bolt on acquisitions
and maximise the return on the assets
that division employs. We have identified
substantial opportunities for both cost
and revenue synergies and working capital
efficiencies which will be realised over
the medium term. The Board is confident
that these acquisitions will enhance the
Group's earnings per share and drive shareholder
value.'
For further information please contact:
Patrick
Jolly,
Chief Executive,
Findel plc
Tel: 01943 864686
David
Dutton
Group Finance Director
Findel plc
01943 864686
Keith
Chapman,
Chairman, Findel plc
Tel: 01943 864686
Jonathon
Brill/Billy Clegg,
Financial Dynamics
Tel: 020 7269 7170
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