Grafenia plc Acquisition of AG Signs
05 July 2018 - 7:44PM
RNS Non-Regulatory
TIDMGRA
Grafenia plc
05 July 2018
5 July 2018
GRAFENIA PLC ("GRAFENIA" or the "Group")
ACQUISITION OF AG SIGNS
Grafenia plc (GRA) announces that it has completed the
acquisition of the entire issued share capital of Devon-based AG
Signs & Print Limited ("AG Signs"). Martin Baily (aged 34), one
of the vendors of AG Signs, joins Grafenia as Regional Director of
the main operating company in the Group. The other vendors George
and Celia Blake (both aged 71) will be stepping away from the
business to enjoy retirement.
In the year ending 31 August 2017, AG Signs' unaudited turnover
was approximately GBP570,000 with an operating profit of circa
GBP65,000. Given the size of the business, the acquisition is not
considered a material transaction for Grafenia, but demonstrates
progress in its strategy of acquiring businesses in the
highly-fragmented signs industry.
Peter Gunning, CEO of Grafenia said "We're delighted to welcome
the AG Signs team to Grafenia. Together, we move another step
forward with our published plan. In December last year, we acquired
Nettl of Exeter, one of our best performing Nettl partner studios.
Our team down there has performed well since. Martin will continue
to lead the AG Signs team while we work on the next part - opening
a Nettl Business Superstore in Exeter, combining our two teams. We
opened the first Superstore in Liverpool Waters this year, and
we're very pleased with the progress there. We are excited to build
something special to help the businesses in and around Exeter".
Martin Baily said "We were thrilled when Grafenia approached us
about the possibility of joining the Group. We had a shared vision
of the products and services our business should be delivering and
were actively looking for ways to enhance our web offering. We've
had a relationship with the local Nettl team for many years and
when I heard about the superstore plans, I was extremely excited
about the opportunities. Merging the two teams makes sense and we
can't wait to build a creative and engaging environment for both
the staff and customers."
George Blake commented "It's been a pleasure building the
business with Martin over the last decade and working with a
committed and very capable team. I believe it will continue to
thrive in Martin's extremely capable hands, and am very happy to be
leaving in the knowledge that the team is joining a wonderful new
environment within the Grafenia group".
Transaction benefits
AG Signs has a strong reputation in the South West, servicing a
range of clients from small businesses to larger nationwide
enterprises. This acquisition provides Grafenia with a further
outlet to offer our growing range of exhibition products, displays
and signage. We aim to be at the start of any client's creative
process, no matter whether that starts with web or signs. Then we
help our clients achieve more for their budget, from our range of
complementary offline print marketing, as well as digital services
like search engine optimisation. It's our belief, this is best
delivered locally.
AG Signs adds further expertise with design, manufacture and
installation of a range of vehicle graphics and building signs. It
extends our local reach of survey and specialist on-site
installation services to encompass Devon and the surrounding
area.
Peter Gunning continued "We've learnt from our earlier
acquisitions that vehicle wrapping and signs are growth markets. We
raised circa GBP3.5million (before expenses) in an equity fundraise
in April this year to accelerate our signs roll-up strategy. We're
thrilled to add AG Signs to the Group. We're building a national
network of sign and graphics installers and it's important we find
more entrepreneurs like Martin."
AG Signs also previously outsourced print to a variety of ad-hoc
suppliers. Now, clients of AG Signs will benefit from access to the
whole Grafenia print and promo product range, all delivered with
our usual service levels and still at compelling value.
Peter Gunning added "When we met AG Signs, we were impressed by
how well they'd already diversified into selling web services. We
actually met Martin when he started evaluating Nettl and was
exploring whether our systems could help his business become more
efficient. We shared our plans, asked him 'what if...?' and the
rest is history. Part of our integration will be to equip the team
with our systems, training and know-how to upskill and efficiently
deliver more web services to clients and higher value web
projects."
Further acquisitions
We're rolling up the sign sector and we've just got started. Do
you own a sign business? Like the look of the Nettl Business
Superstore and want one in your city? Maybe we can build one
together. Or maybe it's time to retire? We can help with your exit
strategy. Either way, let's talk. Email letmein@grafenia.com to
arrange an exploratory call.
For further information:
Grafenia plc
Peter Gunning (Chief Executive) 07973 191 632
Allenby Capital Limited (Nominated
Adviser)
Virginia Bull / Liz Kirchner
/ Nicholas Chambers 0203 328 5656
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NRAKELBBVDFXBBF
(END) Dow Jones Newswires
July 05, 2018 05:44 ET (09:44 GMT)
Grafenia (LSE:GRA)
Historical Stock Chart
From Apr 2024 to May 2024
Grafenia (LSE:GRA)
Historical Stock Chart
From May 2023 to May 2024