30 April 2015 –
The acquisition of the entire issued share capital of Region Consultants Ltd, Region Services Ltd and RSL Cityspace Ltd, together referred to as RSL Group, has been announced. Total consideration for the acquisition of RSL Group is £1.3m and is being satisfied as to £1.1m in cash, funded from existing cash resources, and a three year loan note of £0.2m. RSL Group is one of the UK’s market leaders in developing and supplying public information systems for bus travel, such as interactive terminals, real-time display screens and kiosk based ticketing machines. RSL Group comprises three separate companies under common control which in the year ended 30 June 2014 recorded unaudited consolidated sales of £4.0m, operating profit of £0.4m and had net assets of £0.4m. This looks to be an attractive deal and we continue to rate the shares as a BUY.