Acquisition
09 February 2005 - 10:41PM
UK Regulatory
RNS Number:4048I
Creative Education Corp Plc
09 February 2005
The Creative Education Corporation PLC
Acquisition of four Headstart nurseries
The Creative Education Corporation PLC ("CEC"), the AIM quoted provider of
nursery school facilities, announces that on 8 February 2005 it exchanged
contracts to acquire the entire issued share capital of Headstart (NT) Limited,
Headstart (PE) Limited, Headstart MK Ltd and Headstart (LB) Ltd, (together
"Headstart") from Gary and Julie Moinet ("the Vendors").
Headstart operates five nurseries in Peterborough, Northampton, Leighton Buzzard
in Bedfordshire and Milton Keynes (2) with a total of 242 places of which the
nurseries in Peterborough and Northampton are freehold properties. Each nursery
has established a sound reputation in their local area with occupancy currently
at an average across the nurseries of 72 per cent. based on full time equivalent
nursery places being filled.
The last accounts of each Headstart company showed the following results:
Headstart (LB) Headstart (NT) Headstart (PE) Headstart (MK) Total
Limited Limited Limited Limited
Year ended Year ended Year ended Year ended
31/12/03 31/3/04 31/8/03 31/12/03
Turnover #417,514 #310,523 #170,765 #191,728 #1,090,530
Profit / (loss) #98,219 #11,419 #15,583 #(4,668) #120,553
carried forward
Net assets / #118,550 #261,948 #151,082 #(4,568) #527,012
(liabilities)
Completion of the acquisition is expected to take place by 1 August 2005 and is
conditionally principal on CEC's nominee being registered by OFSTED as the new
day care provider in respect of each Headstart nursery.
The consideration for Headstart is #1,500,000 to the Vendors to be satisfied as
follows:
* #1,330,000 in cash;
* the issue and allotment of such number of ordinary shares in CEC as, at
the average of the middle market listing of one CEC ordinary share on AIM as
calculated from the Daily Official List for the five dealing days up to and
including the third dealing day prior to the expected completion date, have
a value equal to #100,000; and
* the issue by the CEC of #70,000 convertible loan notes which are
redeemable or convertible two years after completion or, if earlier, the
date on which CEC receives an unconditional written confirmation from the
Inland Revenue that there is no liability to taxation of any Headstart
company. CEC is entitled to off set any such liability to tax of the
Headstart companies against the nominal amount of the loan notes and
interest payable on them. The interest rate in the loan notes is 1.5 per
cent. over base and payable quarterly. The loan notes are not be
transferable.
David Alexander, chief executive of CEC, commented:
"We are delighted to have acquired this high quality group of nurseries. The
nurseries fit perfectly into our expansion plans geographically by helping to
consolidate our presence in the Midlands. The group will reinforce our aim to
provide high quality childcare in smaller settings. We are looking forward to
working with the staff and the parents."
Contacts:
David Alexander - 020 8864 5147
Creative Education Corporation
This information is provided by RNS
The company news service from the London Stock Exchange
END
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