StockMarketWire.com - CEPS has acquired 70% of the issued share capital of a newly incorporated company, Aford Awards (Holdings) Limited, which has been formed to acquire all of Aford Awards Limited for £1,500,000.

The acquisition was completed yesterday.

The vendors of Aford are managing director Jon Ford and members of his family.

Aford is a sports trophy and engraving company based in Maidstone, Kent, which was established in 1981 and produces and sells trophies, awards and gifts and associated products and services.

Aford is profitable, cash generative and has enjoyed annual growth in sales and EBITDA over the last five years.

In the year ended 30 November 2013, Aford's sales were £1.2 million and EBITDA was £0.3 million.

At 30 November 2013 net assets were £452,352, including a cash balance of £409,066. Trading performance of Aford in 2014 has been in line with management's expectations for the year to date.

Ford, who has been MD of Aford since 2005, will continue in this role and will be a director of AAHL.

As part of his consideration he will receive 30,000 ordinary shares, being 30% of the issued share capital of AAHL.

CEPS will subscribe £770,000 into AAHL for 70,000 ordinary shares for £70,000, £490,000 acquisition loan notes and £210,000 shareholder loan notes, both with an 8% interest rate.

The acquisition loan notes will be repaid before the shareholder loan notes, but after the vendor loan notes. The vendor loan notes have an annual interest rate of 7%. All categories of loan notes will be repaid subject to the availability of free cash and it is envisaged that the vendor loan notes will be repaid within three years from nompletion. The Ford family will receive total consideration of £1.5m made up of cash of £1,080,000 at completion, £300,000 of vendor loan notes, and Jon Ford will receive £90,000 of shareholder loan notes and 30,000 ordinary shares issued at a price of £1 per share. The cash element of the consideration will be funded from the £770,000 subscribed by CEPS into AAHL and a £400,000 dividend from Aford.


At 8:36am: [LON:CEPS] CEPS PLC share price was 0p at 37p



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