CHIME COMMUNICATIONS PLC
(“Chime” or “the Group”)
Chime Communications, the leading marketing services group, today announces the acquisition of Fast Track Sales Limited (“Fast Track”) and its subsidiaries for an initial consideration of £15 million.
Fast Track, founded in 1998 by former Olympians Alan Pascoe, Edward Leask and Jon Ridgeon, is the leading sports marketing agency in the UK with a team of over 90 people creating award winning, world class sponsorship programmes and events for clients across a multitude of activities. Major clients and partnerships include Aviva, BBC, Clydesdale Bank, Camelot, GSK, G4S, Heineken, Land Rover, MMC, Sainsbury’s, The National Lottery, UK:Athletics, UK School Games (Youth Sport Trust), Visa Paralympic World Cup and Volvo.
The initial consideration is £15 million payable £10 million in cash from within the Group’s facilities and £5 million in Chime shares. Deferred consideration is payable on the average profits for the three years ended 31st December 2009 and the three years ended 31st December 2012. The maximum total consideration (initial and deferred) is £43 million. The transaction (initial and deferred considerations) is based on a multiple of 7 times average pretax profits.
Deferred consideration can be paid in Chime shares or loan notes at Chime’s discretion. Any Chime shares issued to satisfy the deferred consideration are subject to restrictions on sale.
Reported pretax profits (under UK GAAP) for the year to 31st December 2006 were £371,000 and the four main shareholders of Fast Track have warranted pretax profits for the year to 31st December 2007 of £2.5 million. It is expected that the transaction will be earnings enhancing to the Group.
Gross assets (under UK GAAP) of the Fast Track Group at 31st December 2006 were £6.6 million.
The four principal shareholders and Directors of the company; Alan Pascoe, Edward Leask, John Ridgeon and Jim Glover are remaining with the Group under their existing contractual arrangements.
As this transaction will be a class 1 acquisition for the Group under the Listing Rules, a circular needs to be sent to shareholders and their approval sought for the transaction. It is expected that this circular will be sent to shareholders shortly. The financial information included in the circular will be prepared in accordance with IFRS and Chime’s normal accounting policies as is required by the Listing Rules as these are the financial reporting procedures of the Group. As a result, the profit and gross asset numbers stated above may differ from those that appear in the circular. Any such differences will be explained in the circular.
Lord Bell, Chairman of Chime Communications commented:
"Fast Track is an established and successful brand with strong management and long term contracts. We are delighted that Fast Track has joined our collection of leading brands."
Alan Pascoe, Chairman of Fast Track commented:
“In nine years, Fast Track has established itself as the leading sponsorship and events agency in the UK, recently winning five industry awards.
We are delighted to have been sought-out by Chime to become the next significant development in their group portfolio.
This is a huge opportunity to enable our staff and clients to benefit from a broader range of marketing service skills
As company reputations are increasingly judged on what they do, rather than what they simply say, we look forward to driving partnership programmes even more successfully over the coming years.
This is an exciting time for our client’s partnership programmes within all sports as we continue the countdown to the London Olympic and Paralympic Games in 2012 and the legacy beyond.”
- Ends-
For further information please contact:
Lord Bell, Chairman 020 7861 8515
Chime Communications
Christopher Satterthwaite, Chief Executive 020 7861 8515
Chime Communications
Charles Cook/Chris Hamilton 020 7861 3232
Bell Pottinger Corporate & Financial
Jon Ridgeon/Jim Glover, Joint Managing Directors
Fast Track 020 7593 5812
Notes to Editors
About Chime
Chime Communications Plc is the holding company for a number of leading public relations, marketing services and research consultancy firms.
The Chime Group consists of one of the UK's leading public relations groups, Bell Pottinger; two research and consultation businesses Opinion Leader Research; and VCCP, one of the fastest growing advertising and marketing services groups in the UK.
The Chime Group helps clients create, manage, monitor and market their businesses, brands and reputations both in the UK and internationally.
About Fast Track
• Fast Track is the leading sports and events agency in the UK with a staff of over 90 people
• Fast Track, which includes Fast Track Sailing, delivers for clients in four main areas: Events, Communications, Consulting and Rights Marketing
• Major Fast Track programmes within sport in 2007 include:
Heineken – Heineken Cup & Rugby World Cup
Lucozade Sport – Flora London Marathon & FA Premiership
Seven UK:Athletics major televised events
UK School Games
Visa Paralympic World Cup
Glasgow’s bid to host the 2014 Commonwealth Games
Land Rover – Six Nations Championship
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