Acquisition
09 April 2003 - 5:00PM
UK Regulatory
RNS Number:7999J
2 Travel Group PLC
09 April 2003
2 Travel Group Plc
Acquisition of Coach Travel Centre Limited
2 Travel Group Plc ("2 Travel Group" or the "Company") announces that on 4th
April 2003 it entered into an agreement to acquire the entire issued share
capital of Coach Travel Centre Limited ("CTC").
CTC is a Cardiff based service company that acts as an intermediary between tour
companies and coach operators. CTC is an established business with a strong
regional customer base. It is anticipated by the directors of 2 Travel Group
that the acquisition will provide the Company with access to new markets for its
coach services thereby improving vehicle utilisation.
For the year ended 31 March 2002 CTC recorded turnover of #1.2 million and
profit before tax of #66,000. As at 31 March 2002, the net assets of CTC were
#23,000.
The consideration payable by 2 Travel Group for the acquisition is #210,000 to
be satisfied as follows:
* #78,000 payable in cash on completion;
* #55,000 payable in cash 6 months after the date of completion;
* #27,000 payable in cash 12 months following the date of completion; and
* #50,000 through the issue of 694,444 new ordinary shares of 0.2p each in
the Company.
The vendors of CTC have warranted, inter alia, that on completion CTC will have
a net cash balance in excess of #56,000.
Commenting today, Bev Fowles, Managing Director of 2 Travel Group, said "The
acquisition of CTC will significantly enhance our ability to maximise our
vehicle utilisation in the Welsh capital and national tour markets."
This information is provided by RNS
The company news service from the London Stock Exchange
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