Blick Plc has recommended to its shareholders the acquisition of Telefusion Communications Ltd from Granada Group Plc for a total consideration of UKP8.26m. The Swindon, Wiltshire-based time recording and communications equipment group, which reported a cash position of UKP3.8m at the end of 1990 (CI No 1,574), will be supplementing its UKP3.98m cash offer with 2.1m new ordinary shares in Blick – these have been placed with institutional investors by Kleinwort Benson Securities Ltd pending shareholder approval, and a further consideration of up to UKP500,000 may be payable following the valuation of Telefusion’s net assets Telefusion expects these to amount to UKP2m, including UKP1.5m cash. Telefusion became part of Granada with the acquisition of Electronic Rentals Group in 1988. Its main areas of business are the supply of communal aerial television, radio and satellite distribution systems, and of security systems, to local authorities, housing associations and the Department of the Environment. Telefusion has a staff of 190, including 120 engineers, and has three regional centres and seven depots. Recently streamlined, the communications company turned in pre-tax profits down 12% at UKP3.6m for the year to September 29, on revenues of UKP8.9m, down 9%. And it projects a gross contracted rental and maintenance income of UKP18.5m due over the next five years – Granada feels that business will drop off when these contracts have been completed. As at March 31, Blick had future contracted rental income of UKP52m. For Blick’s part, the acquisition will expand the customer base of its communications business, pave a way into new markets and brings the company representation on a local level.
