TIDMTEAM
RNS Number : 0853E
Team PLC
05 July 2021
5 July 2021
TEAM PLC
Acquisition of JCAP Limited
The leading Jersey based Cash Management Company
TEAM plc ("TEAM") the recently listed wealth, asset management
and complementary financial services group, is pleased to announce
that on 2 July 2021it acquired JCAP Limited ("JCAP"), trading as
JCAP Treasury Services, a leading Jersey based provider of cash
management services, focused on improving the return and mitigating
the risks associated with the management of cash for institutions,
professional advisers, trustees and high net worth individuals.
JCAP has over GBP1.3 billion in assets under advice.
The total net consideration payable is up to GBP2.95 million, of
which GBP2,212,501 will be paid in cash and GBP737,499 in newly
issued TEAM shares. The net tangible current assets of the
business, of approximately GBP700,000 are being acquired on a pound
for pound basis, in addition to the total net consideration.
The payment at completion is for GBP1,659,376 in cash, funded
from existing company resources, with GBP553,124 in TEAM shares,
being 740,461 new TEAM shares at an issue price of 74.7pence per
share.
The deferred consideration payment of up to GBP735,500 is
payable depending upon JCAP meeting certain performance targets in
the period up to 31 December 2021, and payable by 31 March 2022, of
which up to GBP553,125 is payable in cash and GBP184,375 in TEAM
shares, based on the closing price in the 10 business days prior to
the time of issue.
Highlights
-- JCAP is a well-established and profitable Jersey business,
and has been known to Mark Clubb, Executive Chairman of TEAM, since
its establishment in 2010
-- JCAP provides a range of cash management services to
institutions, professional advisers, trustees and high net worth
individuals
-- It has long-term partnerships established with leading global
providers of treasury management and foreign exchange services,
providing diversification of income sources, and significant
opportunities for high profit margin growth
-- In the unaudited accounts for the year to 31 December 2021
JCAP generated revenues of GBP1,002,160 and made a post-tax profit
of GBP374,972. Net assets at that date were GBP918,282.
The acquisition has a compelling strategic rationale:
-- Fits with TEAM's strategy to acquire wealth, asset management
and complementary financial services business
-- Clear synergistic revenue growth opportunities through
providing cash management services to the TEAM client base, and
through the potential to launch cash management products through
the regulated fund business of TEAM
-- Builds scale in the home market of Jersey
Material financial benefits expected from the acquisition:
-- A significant increase in the revenues of the group, with the
addition of over GBP1.3 billion in assets under advice, and a
significant step for TEAM towards becoming cashflow positive
-- A combination of expected revenue and cost synergies, through
client referral, co-locating in TEAM's offices, and through using
TEAM's governance and control infrastructure
-- The net consideration represents a P/E multiple of 7.9 times the 2020 earnings
Mark Clubb, Executive Chairman of TEAM, commented:
"At the time we listed we told our shareholders that we had a
well-researched and solid acquisition pipeline and that we would
work through that pipeline with rigour and focus. The acquisition
of JCAP is the first evidence of that. We continue to execute on
our acquisition strategy as well as develop more accretive
opportunities.
JCAP is a natural fit with our plans for the development of
TEAM. Cash management is a complementary service for many of our
current and future clients, and JCAP is the leading provider of
these service in the Channel Islands. We are currently in a period
of historically low interest rates where yield optimisation on cash
balances generates minimal returns. Against this market background
JCAP is a highly profitable business, and if interest rates
increase, as seems likely, this will add significant momentum to
profits as clients seek out JCAP's services to improve returns and
risk management on their and clients' cash holdings."
Application will be made to the London Stock Exchange for
740,461 ordinary shares in TEAM, to be issued pursuant to the
acquisition, to be admitted to trading on AIM. The ordinary shares
will, when issued, be credited as fully paid and will rank pari
passu in all respects with the existing ordinary shares of the
company. It is expected that Admission will become effective and
dealings in the 740,461 ordinary shares will commence at 8.00 a.m.
on or around 8 July 2021.
Following Admission, taking account of the above issue of
ordinary shares the Company's issued share capital will comprise
17,299,795 ordinary shares. From Admission, the figure of
17,299,795 may be used by Shareholders as the denominator for
calculations to determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the Disclosure Guidance and Transparency
Rules.
TEAM plc
Mark Clubb / Matthew Moore
Telephone: +44 (0) 1534 877210
Hannam & Partners
(Financial Adviser to TEAM)
Giles Fitzpatrick / Richard Clarke / Ernest Bell
Telephone: +44 20 7907 8500
Canaccord Genuity Limited
(Nominated Adviser and Broker to TEAM)
Bobbie Hilliam / Alex Aylen / Jeremy Grime
Telephone: +44 20 7523 8000
Novella Communications
(Financial Public Relations)
Tim Robertson / Fergus Young
Telephone: +44 20 3151 7008
Information on TEAM
TEAM plc is building a new wealth, asset management and
complementary financial services group. With a focus on the UK,
Crown Dependencies and International Finance Centres, the strategy
is to build local businesses of scale around TEAM plc's core skill
of providing investment management services. Growth will be
achieved via targeted and opportunistic acquisitions, through team
and individual hires, through collaboration with suitable partners,
and organic growth and expansion.
www.teamplc.co.uk
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQLZLFBFDLEBBF
(END) Dow Jones Newswires
July 05, 2021 02:00 ET (06:00 GMT)
Team (LSE:TEAM)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Team (LSE:TEAM)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024