Grafenia buys Image Everything for up to £3m

Michele Maatouk Sharecast | 17 Jul, 2017 12:53 | | |

cash money sterling pay deal offer acquisition m&a
  • 7.63
  • 0.00%0.00
  • Max: 7.63
  • Min: 7.63
  • Volume: 10,000
  • MM 200 : n/a
15:35 20/07/17
  • 7,782.11
  • 0.59%45.43
  • Max: 7,796.09
  • Min: 7,735.79
  • Volume: 0
  • MM 200 : n/a
15:45 20/07/17
  • 965.82
  • 0.24%2.34
  • Max: 966.40
  • Min: 962.36
  • Volume: 0
  • MM 200 : n/a
15:45 20/07/17

AIM-listed Grafenia has bought large format sign manufacturer and exhibition contractor Image Everything for a total consideration of up to £3m.

The vendors - Neil Cousins, John Fitzgerald and David Brunt - will remain with the group, leading the team and further developing the business as part of Grafenia.

The initial consideration, paid on completion, comprises cash of £1.15m, together with vendor loan notes of £1.25m. A further £0.6m is payable contingent upon the achievement of certain targets relating to the future financial performance of Image and Grafenia said the acquisition is cash flow generative and is expected to be earnings enhancing once fully integrated.

Based in Manchester and founded in 1998, Image Everything currently has 41 employees. It provides clients with merchandising, retail graphics, site branding, signage, promotional advertising and exhibition solutions. In the year ended 31 May 2016, it delivered revenue of £4.81m, a pre-tax profit of £0.43m, and closing net assets of £0.23m.

Grafenia said: "The acquisition of Image, given its size, is a significant further step in our sign roll-up strategy. It enables us to scale our business more quickly.

"Image provides a complementary range of products to those we already make. The acquisition adds additional manufacturing facilities and capability. There's limited overlap and the acquisition will provide cross-selling opportunities for the enlarged group. Our aim is to reliably deliver more of what clients need, from within our supply chain."

At 1240 BST, the shares were up 6.4% to 7.45p.

More news

15:41 Sales run higher at Science in Sport

Sports nutrition company Science in Sport reported a 28% improvement in sales in its first half on Thursday to £8.27m, in a period the board said consisted of “strong” sales increases and “significant” progress in the execution of its growth strategy.

15:38 Reach4entertainment agrees variation on finance with PNC

Media and entertainment company reach4entertainment has agreed a variation of the covenants on its three-year secured asset base facility with PNC Business Credit, it announced on Thursday, which it said reflected the shift in the weighting of its revenues in 2016 and 2017, which affected the 12-month rolling covenant test.

14:56 SafeCharge makes 'solid' start to financial year

Advanced payment technology company SafeCharge said trading in the first half of its financial year was “solid” on Thursday, with the performance of SafeCharge Acquiring “particularly strong” and ahead of management expectations.

14:34 Origo continues selldown with agreement to sell Rising Tech

China and Mongolia-focussed closed-end investment company Origo Partners, which is seeking to divest its entire portfolio by November 2018, has entered into binding agreements with ChinaEquity International for the disposal of its 2% equity stake in Rising Technology Corporation and its 1.6% beneficial interest in Beijing Rising Information Technology.

14:17 Philly Fed index falls more than estimated in July

Manufacturing conditions in the Philadelphia region deteriorated more than expected in July, according to a survey released on Thursday.

15:09 'We're not there yet, financing conditions favourable' ECB's Draghi says

"We're not there yet", European Central Bank chief Mario Draghi said in his press conference when asked whether monetary policy needed to remain as accommodative as it was.

13:46 US jobless claims drop more than expected

The number of Americans filing for unemployment benefits fell more than expected last week, according to data from the Labor Department.

13:37 Thursday broker round-up

BHP Billiton: Citigroup downgrades to Neutral with a target price of 1350p.

13:28 Nyota Minerals runs down cash from share placing, tenements sale

Nyota Minerals said its cash position was little changed at the end of the latest quarter despite its most recent share placing and after the sale of its residual tenements, even as the company continued to search for a viable business after an attempted cash call fell through.

13:07 BP in talks to sell North Sea production assets

BP has begun talks to sell its North Sea oil and gas production assets, according to reports on Thursday.