8th June 2007
Cello extends its public sector research practice with the acquisition of mruk research
Cello Group plc (“Cello”, AIM: CLL), the market research and consulting group has acquired Market Research International Limited (“mruk research”), a specialist public sector market research consultancy. Initial consideration consists of approximately £1.5 million with further performance related consideration of up to a maximum of £4.5 million.
mruk research, which was established in 1994, has a track record with many regional and national public sector organisations including The Metropolitan Police Service, Yorkshire Water, GMPTE, Scottish Executive and the Welsh Assembly. In addition mruk research acts for numerous Government Agencies, Local Authorities, Police Authorities, Regional Development Agencies, Registered Social Landlords and Utilities.
The initial consideration consists of approximately £1.5 million of which £0.75 million is payable in cash and the balance satisfied by the issue of 506,757 new ordinary shares. In addition, there are further performance related payments over the period to 31 December 2010. These further payments are in a mixture of loan notes and new ordinary shares at Cello’s discretion, with a minimum overall loan note consideration of 50% of the further consideration.
For the year to 30 June 2006, mruk research had a turnover of £4.4 million, audited profits before tax of £0.3 million. Net assets as at 30 June 2006 were £0.6 million including cash of £0.4 million.
Application has been made to the London Stock Exchange for the new shares to be admitted to AIM and it is expected that admission will take place by 13 June 2007.
Kevin Steeds, Cello Chairman, said:
“mruk research has an excellent reputation particularly in the public sector research market. The addition of this very complementary business will both add scale and accelerate the growth of our existing public sector practice.”