HML Holdings Plc
("HML" or "The Company")
Placing and Acquisition of Scotts of Putney
HML Holdings Plc (AIM: HMLH) a leading provider of property management, insurance and ancillary services to residential property blocks, announces that it has acquired the business and assets of Scotts of Putney ("Scotts"), for a total consideration of £1.9 million (the "Acquisition"). The Company has raised £0.3 million through the issue of 2,857,200 new ordinary shares by way of a placing with new and existing institutional shareholders at a price of 10.5 pence per new ordinary share ("Placing Shares") (the "Placing").
Scotts is an independent firm of Managing Agents and Surveyors, established in 1976. The business specialises in residential lettings and block management with their associated professional property services. Scott's current portfolio consists of over 3,000 units under management, situated mainly in Central and West London. The team of experienced surveyors, property managers and support staff will become part of HML Shaw Limited, HML's Richmond based subsidiary. The business will remain in its two offices in Putney retaining the Scotts brand and in due course becoming HML Scotts.
Scotts had unaudited revenues of approximately £1.8 million with normalised profits of £300,000 for the year ended 31 December 2010. The acquisition is expected to be immediately earnings enhancing and provides substantial opportunities for HML to cross sell its insurance and ancillary services. This latest acquisition forms part of HML's ongoing expansion programme, providing the Company with a strengthened presence in prime London.
The consideration for the acquisition will be satisfied by £1.3 million in cash and £0.2 million in new ordinary shares of 1.5p in HML on completion. The remaining £0.4 million of the consideration is deferred over three years and will be payable in cash, subject to certain performance conditions.
Application has been made for the Placing Shares to be admitted to trading on the AIM market and admission is expected at 8.00 am on 9 November 2011. Following the Placing, the total issued share capital of the Company will be 34,401,566. The Company holds no ordinary shares in treasury. Therefore, following the Placing, the total number of voting rights in the Company will be 34,401,566.
Pursuant to the Placing, Robert Plumb, HML Chief Executive Officer has subscribed for 50,000 Placing Shares. Following this transaction, Mr Plumb's total beneficial interest in the Company is 1,934,067 ordinary shares, representing approximately 5.6 per cent. of the issued share capital of HML as enlarged by the Placing. In addition, James Howgego, HML Finance Director, has subscribed for 400,000 Placing Shares. Following this transaction, Mr Howgego's total beneficial interest in the Company is 1,050,000 ordinary shares, representing approximately 3.1 per cent. of the issued share capital of HML as enlarged by the Placing.
Commenting on the acquisition, Robert Plumb, Chief Executive of HML, said: "This acquisition is consistent with our strategy to consolidate our presence in focused geographical areas by acquiring and integrating businesses with strong underlying portfolios. In Scotts we have found a partner that fulfils this criterion and has the quality of service culture that is entirely compatible with our own. We look forward to working with the team at Scotts to greatly enhance our service offering in the Central and West London areas. We are delighted to welcome Scotts to the HML group."
For further information please visit www.hmlholdings.com
HML Holdings PLC: 020 8439 8529
Robert Plumb, Chief Executive
James Howgego, Financial Director
Tavistock Communications Group: 020 7920 3150
James Verstringhe, Jeremy Carey
Ed Frisby / Christopher Raggett - corporate finance 020 7220 0500
Simon Starr - corporate broking
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