01 February 2006
ILX Group plc
Acquisition of Customer Projects Ltd
ILX Group plc ('ILX'), the AIM quoted vocational education and training company, announces that it has agreed to acquire the entire issued share capital of Customer Projects Ltd ("Customer Projects") for a maximum consideration of #1.1 million.
Customer Projects is one of just six Accredited Consulting Organisations for PRINCE2®. It is led by Eddie Borup, ex-Head of Projects at Cable & Wireless who has many years of experience in consulting. Eddie will remain with the company as Managing Director of the Customer Projects division. Customer Projects customers include Vodafone, Ericsson, Cable and Wireless, The Capital Markets Company, Claire's Accessories, Leeds City Council, Chester City Council, West Midlands Fire Service, Thames Valley Police, and a major global non-profit making organisation.
This acquisition, combined with the multimedia training software offering from Key Skills and the classroom training offering from Mindscope, puts ILX in the pre-eminent position of being the only company in the PRINCE2 training space to be able to offer a full service offering of e-learning, classroom based training, and a PRINCE2 consulting service.
Initial consideration of #300,000 is to be satisfied by #100,000 in cash and the issue of 189,934 new ordinary shares, which will be subject to a 12-month lock-in period. Deferred consideration of up to #300,000, calculated as #100,000 plus the value of Customer Projects' net assets on completion, is to be made in cash following the agreement of completion accounts.
Admission of the 189,934 new ordinary shares is expected to take place on 2 February 2006. Following this the Company will have 12,833,294 ordinary shares in issue.
The earn-out consideration of up to #500,000 is based on meeting profit targets for the years ended 31 March 2006 and 31 March 2007. The full earn-out payment will be made in the event that Customer Projects' operating profits for the year ended 31 March 2007 meet or exceed #263,000. For its last full year ended 31 March 2005, Customer Projects delivered an operating profit of #142,810 on turnover of #574,581. For the period ended 15 January, management accounts show turnover of #447,000, an operating profit of #134,000, and net assets of #150,000.
The earn-out consideration is to be satisfied in cash or new ordinary shares at ILX's discretion 3 months following the year end.
Ken Scott, CEO of ILX Group, said:
"We are very pleased to welcome Customer Projects and Eddie Borup to ILX Group plc. Not only does the business complement ILX but Eddie Borup is a very experienced and innovative consultant and brings a wealth of knowledge within the area of project management best practice."
"This is an important move as the PRINCE2 market place is beginning to recognise the need for not just qualifications but also for guidance in implementing the principles of PRINCE2. This acquisition makes ILX the only one of its kind to offer this full service and we are determined to continue to lead in the project management sector through the provision of training leading to qualifications together with professional implementation and consulting services."
For further information, please contact:
ILX Group plc
Tel: 020 7371 4444
Binns & Co PR Ltd
Tel: 020 7493 3716
Mob: 07980 541 893
Charles Stanley Securities
Tel: 020 7953 2457